Merry Hill owner returns to profit
MERRY HILL Shopping Centre owner, Westfield Group has announced its first net profits in two years following downturn in the retail sector.
The Australian group, the world’s largest owner of shopping malls by value, said net profit for the six months to June 30, 2010 stood at A$961m (£552.8m), which compared to a loss of A$708m (£407m) in the same period last year.
Westfield, which has 119 sites split between the UK, United States, Australia and New Zealand, said it hoped it had weathered the worst of the economic crisis and was looking forward to an improvement in the retail sector.
The group has restarted development projects in its native Australia but it said demand in the UK and the US had not yet reached the level required for additional investment, although it said the signs were broadly positive.
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In the UK, the company saw net property income grow by 15.6% to £37m, which compared to £32m in the same period last year. In addition to Merry Hill, it also has centres in Derby, London, Tunbridge Wells, and Guildford.
The company is currently developing a massive new £1.45bn facility next to the Olympic Village in Stratford, which should be completed in time for the 2012 Games. It is also progressing new developments in Bradford and Nottingham.
The massive losses incurred last year were attributed to a decline in value of its global portfolio and lower sales across all its operating regions.
The company said there were now signs that both property values and sales were picking up.
Peter Lowy, Joint Chief Executive, said: “We have weathered the crisis and are focusing on operations to create the platform for growth.”
