Westfield confirms Bradford Broadway sale
WESTFIELD today confirmed the sale of the stalled Broadway shopping centre project in Bradford to Meyer Bergman.
The purchase of the project has been made to specialist real estate investment management firm Meyer Bergman together with two major Canadian pension funds, healthcare of Ontario Pension Plan Trust Fund and another co-investor in Meyer Bergman’s second fund, Meyer Bergman European Retail Partners Fund II.
Although Meyer Bergman will become the owner of the Bradford site, Australian firm Westfield will develop, design, construct and lease tenants for the new shopping centre.
Westfield will also be appointed as property manager for the centre following completion of the development.
The transaction is subject to the commencement of the Bradford development, which is expected to occur in the second half of 2013.
The £260m Bradford development will comprise a 550,000 sq ft retail centre including more than 70 shops and places to dine.
It will be anchored by Debenhams, Marks & Spencer and Next, who will occupy 35.6% of the project area.
Duncan Bower, Westfield director of development, said: “The agreements with Meyer Bergman are a significant step forward for the development of the shopping centre for the city of Bradford.
“Westfield has remained committed to progressing the Bradford scheme through difficult global economic times. In the past 12 months, Westfield has secured revised planning permission to ensure the scheme is more complimentary to the city centre, completed the anchor store negotiations with the signing of Marks & Spencer, extended the lease agreement with Debenhams to create an additional third sales level and confirmed that Next intends to open its second Bradford store.
“There is increasing momentum behind this project and strong retail interest from a range of major stores and specialty shops given the relatively untapped retail market in Bradford city centre.”
George Walsh Waring, of Meyer Bergman, said, “Bradford’s city centre has been without an adequate retail offer for over 20 years, so we are excited to be able to deliver, alongside Westfield and our co-investment partners, a prime shopping centre right in the heart of the city that will completely transform its retail offering.
“We are confident that the Westfield Broadway centre will continue the rejuvenation of the city’s civic centre and provide a tangible stimulus to the local economy and jobs market.
“As a specialist retail real estate investment firm our partnership with Westfield is a natural one and the new shopping centre will benefit from our combined expertise and skill in developing and managing premium shopping centres across Europe. Furthermore, in structuring a partnership with two of MBERP II’s largest investors, we have demonstrated our ability to structure large transactions outside of the traditional pooled fund framework for the benefit of our investors.”
Coun David Green, leader of Bradford Council, added: “The Westfield and Meyer Bergman announcement is good news for Bradford. This is a clear signal of investor confidence in Bradford, which builds upon the recent
leasing announcements.”
