In an interesting
move the Westfield Group is planning to split its Domestic Australian shopping centre business from its international interests.
According to
Bloomberg, “Westfield Group, which
is increasing its focus on higher-return activities including development, is
distancing itself from Australia and New
Zealand, where it expects to see the slowest growth this
year. The Sydney-based company spun off half of its Australian and New Zealand
malls into Westfield Retail Trust in 2010, and billionaire co-founder Frank
Lowy and his family sold their 7.1 percent stake in the trust in February.”
Westfield is seen to get much better returns from overseas
with specialty rent increase of 3.8% in US and 2.7% in UK compared with only
1.8% in Australia. Westfield have invested heavily in the giant theme park like
centres overseas which seem to have greater potential than Australia’s humble
shopping centres.
In a particularly critical article this week the Sydney
Morning Herald blamed part of the retail rip-off in Australia on the high
domestic rents charged by Westfield.