Westfield and Hammerson have formed a £1bn joint venture to redevelop Croydon town centre. The deal will see the companies join forces to redevelop and combine the Whitgift Centre and Centrale, with the potential creation of more than 5,000 jobs. It ends the battle between the Australian retail giant Westfield and Anglo-French developer Hammerson as they had been in deadlock for more than a year.
The companies, as a joint venture, will purchase a 25% interest in the 42-year-old shopping centre, following completion of Hammerson's conditional acquisition agreement with Royal London. Westfield will also buy a 50% of Centrale, the £115 million mall opposite the Whitgift Centre owned by Hammerson.
Subject to planning permission, which the companies hope to secure this year, construction is expected to start on the 200,000 sqm site, including retail, leisure and new homes, in 2015.
Mayor of London Boris Johnson commented on the news, '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.' He continued, 'Westfield and Hammerson's innovative developments have breathed new life into long neglected corners of cities across the country, creating thousands of jobs and delivering growth that will soon be repeated in south London.'