Westfield Group

Westfield Group

Company type	Public
Industry	Shopping centre enterprise
Founded	1960
Founder	John Saunders, Frank Lowy
Defunct	2014
Fate	Divided into Scentre Group and Westfield Corporation
Headquarters	Sydney , Australia
Area served	Australia, United States, New Zealand, United Kingdom, Netherlands, Italy, France, Sweden, Austria, Germany, Spain, Croatia, Poland, Czech Republic, Brazil
Key people	Frank Lowy (co-founder and non-executive chairman), Steven Lowy (joint managing director), Peter Lowy (joint managing director)
Products	Shopping centres ownership, development, architectural design, construction, fund and asset management, property operations, leasing, marketing strategies

Westfield Group was an Australian-based shopping centre enterprise that operated from 1960 until it divided into two separate companies in 2014: Scentre Group, which took charge of the Westfield properties in Australia and New Zealand; and Westfield Corporation, which managed the American and European shopping centres before merging with Unibail-Rodamco-Westfield.

The Group's activities encompassed ownership, development, architectural design, construction, fund and asset management, property operations, leasing, and marketing strategies. Publicly traded on the Australian Securities Exchange, it held stakes in 103 shopping centres spread across Australia, the United States, the Netherlands, the United Kingdom, New Zealand, Italy, France, Sweden, Austria, Germany, Spain, Croatia, Poland, the Czech Republic, and Brazil. Its portfolio consisted of nearly 23,000 retail stores with assets under management valued at over A$63 billion.

History

The origins of Westfield Group trace back to Sydney’s western suburbs, where its inaugural project, "Westfield Place," opened in Blacktown in July 1959. The name was derived from combining "west," representing Western Sydney, with "field," referring to the farmland on which it was built. The centre was established by founders John Saunders and Frank Lowy.

Westfield became publicly listed on the Australian Securities Exchange in 1960 and initially expanded by developing five centres within New South Wales before extending into Victoria and Queensland during 1966–67. By early 1971, the company reported profits amounting to $886,382.

The company entered the United States market in 1977 through the acquisition of Trumbull Shopping Park in Connecticut, subsequently adding properties in California, Michigan, New Jersey, and New York throughout the 1980s. In 1994, Westfield collaborated with General Growth and Whitehall Real Estate to purchase 19 centres for US$1 billion. The strategy concentrated on building clusters in key regions including the East Coast, California, and the Midwest. By 2005, Westfield owned shopping centres across 15 states in the US.

During the 1990s, Westfield expanded into New Zealand by acquiring existing Fletchers shopping centres and rebranding them under its name. The group’s first entirely new development there was Westfield Albany, completed in 2007.

On 9 May 2006, Westfield divested eight US shopping centres considered non-core assets to Centro Properties Group as part of a strategic portfolio realignment.

In April 2012, Westfield announced it would sell seven non-core US properties to Starwood Capital Group for A$1 billion along with an additional asset for A$147 million. The capital raised was used to reduce debt and invest in higher-yielding opportunities.

In 2015, authorities foiled a terrorist attack planned against Westfield London coinciding with the anniversary of the 2005 London bombings.

Operations

Although managing extensive assets worldwide, control of Westfield Group remained firmly within the Lowy Family Group. Co-founder and non-executive chairman Frank Lowy maintained leadership alongside his sons, Steven and Peter, who acted as joint managing directors.

Australia

Beginning with its first centre at Blacktown, Westfield operated numerous shopping complexes throughout Australia.

A distinctive feature at locations such as Westfield Miranda, Westfield Hurstville, Westfield Bondi Junction, and Westfield Doncaster was ticketless parking supported by SMS notifications alerting customers when their three-hour free parking period was nearing expiration as well as upon exit. This service was discontinued in 2016 due to privacy concerns related to potential misuse involving incorrect license plate registrations.

United States

Westfield made its entry into the U.S. market in 1977. After the events of September 11, the company received an insurance payout totaling $17.3 million connected to the World Trade Center site. In February 2006, Westfield reached an agreement to purchase 15 stores from Federated Department Stores, mostly situated in southern California. By May of the same year, it divested eight U.S. shopping centres to Centro Properties Group. As of 2024, Westfield's portfolio included ownership of 16 malls throughout the United States.

New Zealand

Westfield began operations in New Zealand in 1997 and acquired a stake in the St Lukes Group portfolio by 1998. It emerged as the leading shopping centre operator in New Zealand, managing six out of its twelve centres in Auckland, including its largest project located in Albany. The company oversaw assets valued at NZ$2.8 billion locally. In mid-2012, Westfield sold its 50% interest in Westfield Shore City at Takapuna and proceeded to divest holdings in six additional centres over a five-year span, ultimately maintaining ownership of five centres nationwide—four of which are in Auckland.

United Kingdom

Prior to the establishment of Westfield Corporation in 2014, Westfield held stakes in two shopping centres across England and Northern Ireland. Its principal asset was a 50% ownership of the £1.6 billion Westfield London development located in Shepherd's Bush, West London, which incorporated new railway and underground station facilities to improve transport links.

Westfield was the proprietor of Westfield Stratford City and had full control over the adjacent Stratford City regeneration project near the 2012 Olympic Park in east London, having acquired the remaining 75% interest. Additionally, the company undertook development of the previously troubled Broadway shopping centre after taking over Stannifer in 2004.

On 9 October 2007, Westfield inaugurated a £340 million extension and renovation of Derby's Eagle Centre, rebranding it as Westfield Derby. This centre was later sold to Intu in 2014.

Westfield was also engaged in discussions regarding redevelopment proposals with the Whitgift Foundation for the Whitgift Centre located in Croydon, South London.

Relationship with tenants

The Australian Competition & Consumer Commission conducted investigations into conflicts between Westfield Group and its tenants. In 2004, it concluded that Westfield had misused its market dominance during tenant dispute resolutions, resulting in Westfield providing a formal undertaking to refrain from "unconscionable conduct and intimidation" toward tenants.

Within Australia, Westfield’s fee arrangements and operational policies attracted criticism from retailers operating within acquired centres. These retailers contended that collaborative efforts should lead to upgrading stores to meet Westfield’s corporate standards, with rental increases implemented alongside necessary improvements to fixtures and services.

Relationship with competition

In 2002, Liverpool City Council approved a rival shopping centre approximately three kilometres from Westfield Liverpool.