A major contributor to this article appears to have aclose connectionwith its subject.(July 2015) |
Westfield Groupwas an Australianshopping centrecompany that existed from 1960 to 2014, when it split into two independent companies:Scentre Group,which owns and operates the Australian and New Zealand Westfield shopping centre portfolio; andWestfield Corporation,which continued to own and operate the American and European centre portfolio.[2]
 | |
| Company type | Public |
|---|---|
| ASX:WDC | |
| Industry | Real estate investment trusts |
| Genre | Shopping malls |
| Founded | 1960 |
| Founder | John Saunders Frank Lowy |
| Defunct | 2014 |
| Successors | Scentre Group Westfield Corporation |
| Headquarters | , Australia |
Area served | Australia United States United Kingdom Italy Croatia Czech Republic Sweden New Zealand Poland Brazil France Austria Netherlands Germany Slovakia Spain |
Key people | Peter Lowy (co-CEO)Steven Lowy(co-CEO) |
| Revenue |  US$833 million (2014) |
| US$391 million (2014) | |
| US$461 million (2014) | |
| Total assets | US$28.5 billion (2014) |
Number of employees | 2,000+ (2014)[1] |
| Parent | Scentre Group |
| Website | westfieldcorp |
Westfield Group undertook ownership, development, design, construction, funds/asset management,property management,leasing, and marketing activities. The multinational company waslistedon theAustralian Securities Exchangeand had interests in and operated one of the world's largest shopping centre portfolios with investment interests in 103 shopping centres acrossAustralia,theUnited States,theNetherlands,theUnited Kingdom,New Zealand,Italy,France,Sweden,Austria,Germany,Croatia,Poland,Czech RepublicandBrazil,encompassing around 23,000 retail outlets and totalassets under managementin excess of A$63 billion.[3]
History
editThe Westfield Group had origins in thewestern suburbsofSydney.The first development was named "Westfield Place", and opened in July 1959 inBlacktown.[4]The name Westfield is derived from "west" related to the West Sydney location, and "field" due to having located on subdivided farmland. The centre was opened by John Saunders and Frank Lowy.[4]
The company was floated on theAustralian Securities Exchangein 1960 and built another five centres inNew South Walesbefore expanding intoVictoriaandQueenslandin 1966–67.[5]For the first half of 1971, Westfield reported earnings of $886,382.[6]
The expansion into the United States began with the purchase of theTrumbull Shopping ParkinConnecticutin 1977, and was followed by three centres inCalifornia,MichiganandConnecticutin 1980 and three centres in California,New JerseyandLong Island,New York in 1986.[5]In 1994 Westfield joined with General Growth and Whitehall Real Estate to purchase 19 centres for US$1 billion. Westfield seems to form clusters of centres on particular cities or within a small number of states. They built considerable holdings on the East Coast and in California before expanding into the Midwest. By 2005, the company owned centres in 15 US states.[5]
In the 1990s, Westfield began a major expansion toNew Zealand,where they mostly bought existing shopping centres of the Fletchers company, progressively rebranding them. Only in 2007, withWestfield Albany,did the company open a fully new centre in the country.[7]
On 9 May 2006, Westfield announced the sale of eight United States shopping centres which it deemed to fit outside its strategic plan, toCentro Properties Group.[8]
In April 2012 it was announced that the Westfield Group would sell seven non-core property assets toStarwood Capital Groupfor A$1 billion and one other property to an undisclosed buyer for A$147 million. The funds would be used to repay debt and invest in businesses offering higher return. The sales were expected to be completed by mid–2012.[9]
In 2015, a group of terrorists wanted to blow up the Westfield London but they were stopped by police. They wanted the bombing to be around the same day as that of the 2005 London attacks anniversary.[10]
Operations
editDespite the Westfield Group's asset dimensions, the Westfield Group was strongly controlled by the Lowy Family Group, including non-executive chairman,Frank Lowy,one of its founders.[11]Lowy's two younger sons,Stevenand Peter, were joint managing directors.
Australia
editHaving been established in Australia, with their original premises being at Blacktown, the Westfield Group continued to operate a large number of shopping centres in Australia.
A feature of ticketless parking atWestfield Miranda,Westfield Hurstville,Westfield Bondi JunctionandWestfield Doncasterwas that SMS alerts were provided for when the shopper's three free hours of parking were about to expire and when the shopper left the centres. This feature was removed in 2016 due to concerns that the system could be used to track the movements of others by giving the wrong car numberplate on registration of the phone number.[12]
United States
editWestfield entered the United States market in 1977. In September 2003 the company received $17.3 million as a party in the insurance claim following theterrorist attackon theWorld Trade Center.[13]On 18 February 2006, theLos Angeles Timesreported that Westfield had agreed to acquire 15 stores fromFederated Department Stores,all but three in southernCalifornia.[14]On 9 May 2006, Westfield sold eight United States shopping centres to Centro Properties Group.[8]As of 2024, Westfield owned 16 malls in the United States.[15]
New Zealand
editWestfield entered the New Zealand market in 1997 and acquired an interest in the St Lukes Group portfolio in 1998. Westfield malls became by far the most numerous chain in New Zealand, with six of its 12 centres inAuckland,including their largest development located inAlbany.Westfield had NZ$2.8 billion in assets under management in New Zealand.[16]In mid-2012, Westfield sold its 50% share of Westfield Shore City inTakapunaon Auckland'sNorth Shore,[16]now known as Shore City Shopping Centre, and over the next five years sold, or divested itself of its interest in, six of the remaining stores. It now has five stores nationwide, four of them in Auckland.
United Kingdom
editAs of 2014, before Westfield Corporation was created, Westfield had an interest in two shopping centres inEnglandandNorthern Ireland.
By far its most significant asset was Westfield's 50% partnership[17]in the£1.6b[18]Westfield Londondevelopment inShepherd's Bush,West London.The development included the construction of a newrailway stationfor theLondon OvergroundandSouthernservices, and a new entrance for theLondon Underground station.
Westfield owned theWestfield Stratford Cityand also controlled theStratford Cityredevelopment project next to2012 Olympicpark inStratfordin eastLondon,having acquired the 75% of the project that it did not already own.[19]
Westfield was the developer behind the troubledBroadwayshopping development inBradfordafter acquiring Stannifer in 2004.[20]
On 9 October 2007 Westfield opened the £340m extension and refurbishment ofDerby's Eagle Centre, which saw the shopping centre rebrandedWestfield Derby.[21]The centre was subsequently sold toIntuin 2014.[22]
Westfield were reviewing plans with theWhitgift Foundationto rebuild theWhitgift CentreinCroydoninSouth London.[23]
Relationship with tenants
editTheAustralian Competition & Consumer Commissioninvestigated several disputes between the Westfield Group and its tenants. In 2004 the Commission found Westfield was abusing its market and commercial power in settling disputes with tenants, and forced Westfield to formally undertake to not engage in "Unconscionable conduct and intimidation" of tenants.[24]
Also in Australia, Westfield fee structures and policies were criticised by retailers who operated in centres that had been taken over by the company. Retailers suggested that when centres were acquired there should be more cooperation between the new operators and existing tenants in bringing shops up to the corporate standards of the Westfield Group, and increases in rent (required to operate a shopping centre with high standards of fittings and services) should be staged with the required improvements in fittings.[25]
Relationship with competition
editInLiverpool,Australia in 2002, a competing shopping centre was lodged toLiverpool City Counciland subsequently built. The centre would be about three kilometres fromWestfield Liverpool.
References
edit- ^http://3e2rn51w31w0f6cvh1jkh9u48z.wpengine.netdna-cdyomum015/02/WFD-Annual-Fin-Report-2014.pdf
- ^"URW".www.westfieldcorp.com.
- ^"The Westfield Group's shopping centre portfolio is one of the largest in the world"(Press release). Westfield Group.Retrieved2 February2013.
- ^ab"History",Westfield Corp
- ^abcSammartino, André; Van Ruth, Frances (2007). "The Westfield Group". In Dick, H.; Merrett, D. (eds.).The Internationalisation Strategies of Small-Country Firms: The Australian Experience of Globalisation.Cheltenham, England: Edward Elgar. pp. 308–318.
- ^"Westfield, at new peak, lifts its payout".Canberra Times.Vol. 45, no. 12, 882. Australian Capital Territory, Australia. 6 August 1971. p. 11.Retrieved29 March2017.
- ^Gibson, Anne (23 August 2007)."Countdown under way for Albany supermall rollout".New Zealand Herald.
- ^ab"Centro Watt Enters Mall Business; US Platform Well-Positioned to Continue Growth".Business Wire.11 May 2006.Retrieved7 February2019.
- ^Saminather, Nichola (18 April 2012)."Westfield Sells 7 U.S. Malls to Starwood for $1 Billion".Bloomberg News.Retrieved18 May2012.
- ^"Couple found guilty of 7/7 anniversary London bomb plot".The Guardian.29 December 2015.
- ^Cummins, Carolyn (24 September 2004)."Frank Lowy gives himself a $1.3m pay rise".Sydney Morning Herald.Retrieved28 November2006.
- ^Trembath, Murray (3 February 2016)."Why your SMS alerts at Westfield Miranda and Hurstville stopped".St George & Sutherland Shire Leader.Retrieved28 March2017.
- ^"Westfield wants out of World Trade Centre site".Sydney Morning Herald.5 September 2003.
- ^Roger Vincent (18 February 2006)."Deal to Open Up Shopping Malls".Los Angeles Times.Archivedfrom the original on 15 September 2008.
- ^"Properties".Westfield Corp.Retrieved6 May2024.
- ^abGibson, Anne (29 June 2012)."Westfield sells Auckland's Shore City mall".New Zealand Herald.Retrieved11 August2013.
- ^"Property Portfolio - London".Westfield Group. March 2018.
- ^"A New Icon in UK Retail:" Westfield London ""(PDF)(Press release). Westfield Group. 18 September 2006. Archived fromthe original(PDF)on 28 September 2007.Retrieved30 November2006.
- ^"Westfield to control 100% of Stratford City, Major East London Regeneration Project"(Press release). Westfield Group. 13 June 2006.Retrieved4 December2006.
- ^Kilner, Will (29 September 2006)."Broadway construction" will start in New Year "".Telegraph & Argus.Retrieved4 December2006.
- ^Walsh, David (30 November 2006)."The Eagle is Grounded".Derby Evening Telegraph.Retrieved30 November2006.
- ^Johnson, Robin (20 March 2014)."Westfield Derby shopping centre sold to Intu for £390m".Derby Evening Telegraph.Retrieved4 July2014.
- ^Dangerfield, Andy (5 July 2012)."Westfield unveils plans for Croydon shopping centre".BBC News.
- ^Hughes, Anthony (18 June 2004)."Westfield promises not to bully".Sydney Morning Herald.Retrieved4 December2006.
- ^"Westfield fees 'force business closure'".ABC News.Australia. 30 September 2006.Retrieved28 November2006.
External links
edit