LaSalle, Westfield Pursuing $1.4B Retail Plan

MELBOURNE, AUSTRALIA-Advancing the lifestyle center concept Down Under, LaSalle Investment Management and the Westfield Group are committing $1.5 billion to reposition the Westfield Doncaster Mall here into a three-level complex offering a range of entertainment and retail options. The refurbished center is slated to open by the end of 2008 and will contain 1.3 million sf and 400 stores, including such names as Big W, Coles, KMart, Myer and David and a Safeway supermarket.

“Given Westfield’s position as the premier shopping center group in the region, we are delighted to partner with them on this blue-chip investment,” says LIM regional director Andrew Heithersay, whose company is securing a 50% interest in the project on behalf of its Asia Property Fund. LIM will make progressive payments during the next 18 months to fund the renovation, company officials reported. The firm’s total contribution of $738 million is anticipating a property yield of 4.7% upon completion of the renovation.

Besides restaurants and a Village Cinemas theater, Westfield Doncaster will also feature a café court and entertainment district. According to Heithersay, the region has “strong growth prospects” due to favorable demographics and income levels. Melbourne is the capital of Victoria, a state in southeastern Australia whose population now exceeds five million people.