Australia-based Westfield and the UK-based property developer Hammerson have formed a joint venture (JV) to redevelop the £1bn Whitgift and Centrale shopping centres in Croydon, London.
As part of the JV, Westfield has acquired a 50% interest in the £115m Centrale shopping centre from Hammerson.
The JV will also acquire a 25% interest in the Whitgift Centre, upon completion of Hammerson’s conditional acquisition deal with Royal London.
Under the new JV deal, Westfield and Hammerson will redevelop and combine the two shopping centres into a mixed-use scheme spanning approximately 200,000m², featuring retail, leisure and residential facilities with the potential for hotels and offices.
Westfield and Hammerson have formed a joint management company which will be responsible for development, leasing and asset management of the completed scheme.
As per the deal, Westfield will be responsible for design and construction of the project while Hammerson will run Centrale and manage any future property acquisitions.
Westfield chairman Frank Lowy said, "The delivery of a major retail regeneration scheme will re-establish Croydon as South London’s premier shopping district and will be a catalyst to further investment and development in the Croydon borough."
Planning consent is expected to be secured in 2013, with construction anticipated to begin on site in 2015.
Hammerson owns and manages the 700,000ft² Centrale shopping centre which attracts more than 12 million visitors per year.
Centrale shopping centre will feature 80 retail units and two department stores and also has approval to create a new leisure and restaurant destination in the centre.
Whitgift Centre features 600,000ft² of retail space and 400,000ft² of offices, including Centre Tower.
The centre was constructed in two phases in 1966 and 1969 and was refurbished in 1985 and 1998.
Image: Centrale shopping centre will feature 80 retail units and two department stores. Photo: BbBear.