Westfield is set to increase rents at its west London outpost following a rise in sales across both of its shopping centres in the capital.
According to Bloomberg, Peter Lowy, co-chief executive officer of Westfield, said in a telephone interview today: “The retailers at Westfield London have had five years of trading now, they’ve been doing very well, and now it’s time for the rents to catch up to the sales revenue.” Westfield was unavailable for comment as Drapers went to press.
The decision to increase rents comes as Westfield announced its half year results, which saw sales at its London outlets rise 9.5% to £1.9bn for the six months to June 30.
Fashion sales at Westfield’s two London shopping centres rose 9.5% in the first half of the year, with overall sales at the outlets hitting £1.9bn.
Westfield Stratford City enjoyed stronger half year growth, with sales up 7.3% compared to its older sibling, which reported sales growth of 1.9%. The centres attracted approximately 70 million customers during the period.
Tourist spend at Westfield Stratford jumped 30%, while The Village, home to more than 40 luxury brands at Westfield London, saw tourist spend increase 16% year-on-year.
Michael Gutman, Westfield manager director Europe, said: “Westfield’s London centres continue to deliver strong sales growth in 2013. They are successful examples of our global strategy to deliver iconic centres in key world markets, combining the best in fashion, dining, leisure, entertainment and assisted with the latest in technology.”
Westfield is in the planning stages of a further £3bn of regeneration projects over the next five years in the UK and Europe, with the expansion of Westfield London and new developments at Croydon, Milan and Bradford.