Westfield to decide on offshore market listing
Frank Lowy’s Westfield Corporation expects to decide on an offshore stock market listing for the international shopping mall giant by early 2016.
The company, which has 40 malls in the United States and Britain, has been reviewing possible listing locations since mid 2014 when it was spun off from Westfield’s Australian and New Zealand operations.
“That review is ongoing and we expect to report back with a recommendation by the next AGM,” co-chief executive Peter Lowy told investors at Westfield Corp’s annual general meeting on Thursday.
The meeting coincided with Westfield Corp announcing a 5.7 per cent lift in first quarter specialty retail sales.
The result was driven by a 6.3 per cent increase in sales at the group’s flagship centres, which include the likes of Westfield London, during the three months to March 31.
Co-chief executive Peter Lowy defended Westfield’s decision to spin off its international malls into Westfield Corp and its Australian and New Zealand malls into Scentre Group.
Ahead of the controversial split, many investors were concerned about the growth prospects for Scentre compared to the internationally-focused Westfield Corp.
But chairman Frank Lowy said the restructure had generated significant value for shareholders.
“Since the restructure was announced in December 2013, the total investment return for Westfield Group securityholders has been 45 per cent, almost three times the performance of the broader market,” he told shareholders at the meeting.
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“This outcome has reinforced my view that you should always be open to looking at new structures and new ideas to create value, and I’m proud that Westfield has always taken this approach.
Westfield Corp is focused on rolling out flagship properties across the US, Europe and UK, including the $1.4 billion Westfield World Trade Centre in New York.
The mall inside the new World Trade Centre is expected to open in late 2015.
“In many ways, it will provide a window on the future in terms of the kind of centres we will create and manage in the world’s leading cities in the years ahead,” chairman Frank Lowy told shareholders.
Westfield shares were 15 cents lower at $9.05 at 1040 AEST.
