Hammerson plc and Westfield today announced they have entered into a joint venture to redevelop the retail center of Croydon. As part of the joint venture, Westfield has acquired a 50% interest in the £115 million (approx. €138 mln) Centrale shopping center from Hammerson. The joint venture will also purchase a 25% interest in the Whitgift Centre, following completion of Hammerson's conditional acquisition agreement with Royal London.
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Hammerson plc and Westfield today announced they have entered into a joint venture to redevelop the retail center of Croydon. As part of the joint venture, Westfield has acquired a 50% interest in the £115 million Centrale shopping center from Hammerson. The joint venture will also purchase a 25% interest in the Whitgift Centre, following completion of Hammerson's conditional acquisition agreement with Royal London.
Under the new joint venture agreement, Westfield and Hammerson intend to redevelop and combine the two main Croydon shopping centers, the Whitgift Centre and Centrale, to deliver a comprehensive and transformational change to Croydon. The mixed-use scheme of around 200,000 m² will include retail, leisure, residential with the potential for hotels and offices, and will create over 5,000 new jobs.
Hammerson and Westfield will meet with all stakeholders over the coming weeks to discuss their plans for Croydon, following which a revised master plan will be created combining the best elements of both schemes. It is anticipated that planning consent could be secured in 2013, with construction expected to start on site in 2015 for the c. £1 bln scheme.
Westfield and Hammerson have set up a joint management company which has responsibility for development, leasing and asset management of the completed scheme. The Partnership will engage Westfield to undertake the design and construction of the project. Hammerson will continue to asset manage Centrale and any further acquisitions prior to the development of the Whitgift Centre. A Westfield Executive will lead the project development team and it is intended that a Hammerson Executive will lead the asset management of the completed center.
Boris Johnson, Mayor of London, has welcomed the conclusion of the joint venture agreement between Westfield and Hammerson to bring forward the regeneration of the retail center of Croydon, and will officially launch the new joint venture today at the Fairfield Halls in Croydon.
"Croydon has huge potential to return to its former glory as one of London's most vibrant town centers, and a major driver of its economy. The redevelopment of the Whitgift Centre at its heart is crucial to this vision," said Mayor of London Boris Johnson.
"Westfield and Hammerson's innovative developments have breathed new life into long neglected corners of cities across the country, creating thousands of jobs and delivering growth that will soon be repeated in south London," said Johnson.
"We have shown our commitment to Croydon through our existing investments in the town cent
