Westfield, the shopping centre owner, is set to increase rents at its Shepherd’s Bush scheme as it revealed sales at its two London centres were up 4.5% in the first half.
Sources told Retail Week that rents at Westfield London are expected to rise by as much as 40% in some cases, after the developer launched a rent review after five years’ trading at the centre.
“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,” Peter Lowy, co-chief executive of Sydney-based parent company Westfield, told Bloomberg.
Sales at Westfield London increased 1.9% in the first half, while sales at Westfield Stratford jumped 7.3%.
Leisure sales surged 14.4%. Westfield declined to give an overall retail sales figure across the two centres but said fashion sales were up 9.2% and jewellery rose 9.5%.
Tourist spend at Westfield Stratford increased 30% in the first half of the year.
Westfield manager director, Europe Michael Gutman 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 currently in the planning stages of a further £3bn-plus of regeneration projects over the next five years in the UK and Europe, including the expansion of Westfield London and new developments in Croydon, Milan and Bradford.”