Westfield considers separate fund for UK assets

London-Westfield is considering a separate fund to hold its UK assets, which include seven shopping centres acquired after only two years in the market.

The separate fund could be used to help raise £1.7 billion ($2.7 billion) for further investment in new retail centres and refurbishment of existing centres in America, Europe and Australia.

WestfieldÂ's main UK assets were acquired when it bought into MEPCÂ's UK retail portfolio two years ago. Then earlier this month the company secured its first UK planning consent when Derby City Council gave outline planning consent for a £200 million redevelopment of the Eagle Shopping Centre. The extension and redevelopment of the existing centre will increase the size of the centre from 25,500 sq m in size to more than 83,500 sq m.

Analysts believe the setting up a separate fund would be positive for the stock, but the company has stressed there is no 'immediate urgency' to set up the fund.

Managing director Steven Lowy also said the company sees its U.K. operations as a platform for future growth in Europe. But he added: 'I wouldnÂ't rule them out but theyÂ're not imminent either.'

(source: GlobeSt.com)

Related News