Westfield re-opens development cheque book

Shopping centre group Westfield has announced an $800 million development program for Australia, based on a more positive outlook for the retail sector.

The same time a year ago Westfield announced it was halting new development projects as the global financial crisis gripped the world.

Retail spending was flat and all cash raised through investors was used to boost the group’s balance sheet. But as the world economies recover, the group is planning about $10 billion of future development opportunities around the world.

In Australia, it has flagged the $600 million Sydney City development in Pitt Street Mall as well as a facelift for Fountain Gate in Melbourne’s south and a $125 million upgrade of the Belconnen Centre in Canberra and the Macquarie Centre in Sydney.

The company also announced it would start pre-development activity on future development opportunities at Carindale (Queensland), Marion (South Australia), Miranda (NSW) and Mount Gravatt (Queensland).

Westfield today announced overall sales for the three months to the end of March in Australia rose by a marginal 0.4%. 

Goldman Sachs JBWere’s analysts said the group’s retail sales data showed that sales trends are slowing in the Australian market, in line with other shopping centre portfolios.

‘‘The first quarter comparative specialty store sales growth of 0.4 per cent appears weak although the annual 2.2 per cent growth is broadly in line with peers and showing continued slowing,’’ the analysts told Fairfax media.