Commercial Finance Specialists

Westfield's announcement on Wednesday that it had agreed a deal with the Whitgift Foundation has been tempered after it was revealed that one of the key stakeholders were not consulted.

The deal with the Whitgift Foundation, which owns the freehold of the Centre, was set to allow Westfield to make plans for a renovation of the south London commercial development.

However, Royal London Asset Management, which owns a 25% stake in the mall, struck a note of surprise at the agreement made without its foreknowledge.

"This has taken place without prior consultation with Royal London or, to our knowledge, the Whitgift Trust, whose ownerships jointly amount to approximately 75% of the centre and include the management responsibility", Royal London noted.

The Whitgift Trust owns a 50% stake, and it would suggest, therefore, that a majority disagreement would cause significant problems for Westgate's proposed scheme.

Royal London added that while it respected Westfield's property development in London, it was ready to consider other development partners, who, it believes, could also deliver top quality projects for Croydon.

"To achieve the best possible outcome for all stakeholders, we are continuing with the ongoing process of identifying the most appropriate partner with which to move the development forward and are excited by the opportunity that this presents", Royal London added.

Westfield said in its initial announcement that its deal was subject to "concluding satisfactory agreements with key stakeholders", and it remains possible for the existing 'agreement' to be pursued.

Hadji Singh