Retail development giants Westfield and Hammerson plc have agreed a 50:50 joint venture plan to regenerate and unify the retail centre of Croydon. Construction is planned to start in 2015.
As part of the JV, Westfield has acquired a 50% interest in the £115m Centrale shopping centre from Hammerson. The joint venture will also purchase a 25% interest in the Whitgift Centre, following completion of Hammerson’s conditional acquisition agreement with Royal London.
Under the new 50:50 joint venture agreement, Westfield and Hammerson intend to redevelop and combine the two main Croydon shopping centres, the Whitgift Centre and Centrale, to deliver a comprehensive and transformational change to Croydon. The mixed use scheme of around 200,000m2 will include retail, leisure, residential with the potential for hotels and offices and will create over 5,000 new jobs.
Boris Johnson, Mayor of London, has welcomed the conclusion of the joint venture agreement between Westfield and Hammerson to bring forward the regeneration of the retail centre of Croydon, “Croydon has huge potential to return to its former glory as one of London’s most vibrant town centres, and a major driver of its economy. The redevelopment of the Whitgift Centre at its heart is crucial to this vision.”
The news follows the mayor’s commitment in 2011 to invest £23m towards the regeneration of Croydon town centre following the August 2011 riots.
Croydon is also receiving investment from the mayor’s £50m Outer London Fund designed to boost the local economy. Westfield and Hammerson will meet with all stakeholders over the coming weeks to discuss their plans for Croydon, following which a revised masterplan will be created combining the best elements of both schemes. It is anticipated that planning consent could be secured in 2013, with construction expected to start on site in 2015 for the £1bn scheme.
