Westfield to sell half of centre's retail

File photo / Herald on Sunday

Westfield Group is to sell half of its interest in the retail component of the property group's Stratford City centre in the United Kingdom for £871.5 million ($1802 million).

Westfield will gain a development profit of about £300 million after the sale of the centre in London's east to a new joint venture of APG of The Netherlands and Canada Pension Plan Investment Board (CPPIB).

The property group will retain full ownership of the adjacent non-retail development sites.

"Today's announcement continues our strategy of creating value through the introduction of joint-venture partners into our assets globally, at the appropriate time," said Westfield Group managing director Steven Lowy.

"This transaction delivers, a year ahead of opening, the value and profit we have created through the development of Stratford City.

"The group will significantly improve its return on invested capital from the development, and will remain a long-term investor, property manager and developer of this landmark shopping centre."

Westfield said the realised profit of about £150 million would be added to the group's future retained earnings and an unrealised £150 million would be recognised as development valuation gains.

Stratford City, a retail and entertainment complex, is scheduled to open next year.

- AAP