Westfield sells half stake in Stratford City retailing

AUSTRALIAN shopping-mall owner Westfield Group is selling a stake in its Stratford City development in London to Dutch and Canadian pension funds for £871.5m, Westfield has revealed.

The company said it had agreed to sell a 50 per cent stake in the retail component of the development, which is being built next to the site of the 2012 Olympic Games, to Dutch pension fund APG and the Canada Pension Plan Investment Board.

The property group will retain full ownership of the adjacent non-retail development sites.
Westfield said realised profit of around £150m would be added to future retained earnings. An unrealised £150m would be recognised as development valuation gains.

The centre was scheduled to open in the third quarter of 2011, with around 75 per cent of the retail area either leased or committed, Westfield said.