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The Westfield Group

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The Westfield Group ASX: [WDC] is an Australian-owned company that owns shopping centers in Australia, New Zealand, the United Kingdom, and the United States. Their shopping centers were typically branded as Westfield Shoppingtowns, a practice that has been widely criticized in the U.S. as taking away from the historical importance of many malls, however the company discontinued the use of the "Shoppingtown" label in June 2005. The company pioneered the incorporation of entertainment and dining precincts into shopping centers. On May 9, 2006, Westfield announced through their webpage the sale of 8 poorly performing centers in the United States in an effort to divest themselves of "non-strategic assets" that no longer meet their investment criteria, nor are in their long-term development plans.

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Westfield history

In 1959, Australian businessmen Frank Lowy and John Saunders (businessman) opened a delicatessen in western Sydney. When the business proved successful, the pair purchased nearby land in Blacktown, and built a shopping center with two department stores, twelve specialty shops, and parking for 50 cars. They named this center "Westfield Place", "west" because it was located in the western suburbs, and "field" because the center had a view across the sprawling market gardens. The center's name was later shortened to simply "Westfield".

Westfield Holdings was publicly listed in 1960, and in the 1960s and 1970s, the company constructed or acquired 14 centers on the Australian east coast. Westfield entered the United States market in 1977, and the New Zealand and United Kingdom markets in 2000. It soon established dominance in a number of regions, most notably the crucial Los Angeles and New York, New York markets. Prior to its destruction in the September 11, 2001 attacks, the underground shopping mall at the World Trade Center was one of Westfield's crown jewels, having acquired it in June 2001. Its 99-year lease enabled Westfield to have a powerful say in the redevelopment of the site, but faced with a protracted process for rebuilding, Westfield sold its rights to the site back to the Port Authority of New York and New Jersey in 2003.

Westfield today

Today, Westfield has interests in total assets worth A$41 billion, representing 121 shopping centers in four countries with over 10 million square meters of retail space. It is the world's largest retail property group by equity market capitalization, yet it is still chaired by Frank Lowy, one of its founders.

Since entering the United States market in 1977, Westfield has aggressively acquired, renovated and expanded many mall properties in order to draw wealthier consumers from longer distances. It has also financed large advertising campaigns to increase awareness of its Westfield brand.

But Westfield isn't all about wine and roses; the company has been accused in the past of creating bogus front groups to hide behind while ruthlessly fighting competition. In New Haven Connecticut it was called “Save Our Downtown Alliance” and in Arcadia, California, where a battle currently rages, it goes by the name, “Arcadia First.” Recently, Australia’s most respected public affairs television program reported that Westfield’s CEO was forced to apologize for a series of clandestine campaigns against corporate rivals. Their statement said: “We have been guilty of a lack of transparency and openness and that is a great matter of concern and embarrassment to the company.” And according to the Sydney Morning Herald, “Westfield has shelled out $3.5 million to settle a claim that the shopping center owner allegedly backed the creation of bogus community action groups intent on thwarting a rival retail property development in Sydney’s west.”

Another Australian news source, crikey.com.au offered the following observation. “Westfield chairman Frank Lowy is using every tool available to ruthlessly crush competitors to his giant shopping center empire. You have to ask the question whether Westfield really needs to be so ruthless and greedy in playing hardball…After all, Frank Lowy is the second richest Australian with an estimated wealth of $4.2 billion and he owns 11 per cent of a $27 billion monolith that seems to have bullying, political donations and dodgy practices as its stock in trade.”

In what appears to be a blatant attempt to stop a project in Renton, three separate appeals were filed May 25, 2006, against the city’s approval of a Master Plan for the Landing. Certainly anyone can file an appeal and it is not an uncommon practice, but this one deserves a closer look. The appeals were filed by Westfield’s attorney, Peter Buck of Buck and Gordon, a land use law firm in Seattle. Buck claimed to be filing the appeal on behalf of the “Alliance for South End,” a non-profit entity he established on the same day, May 25. Buck was the only director listed on the incorporation papers and in the appeal there is an admission that Westfield is a client of Buck & Gordon and is contributing to the cost of the appeal!

It currently has a £400 million plan to expand and renovate the Broadmarsh shopping center in Nottingham and is a 50% development partner in the new WhiteCity shopping centre in Shepherd's Bush, west London.

Locations

Australia

  • Marion (Oaklands Park)
  • Tea Tree Plaza (Modbury)
  • West Lakes

New Zealand

United Kingdom

United States

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