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Westfield on track to deliver £1.5billion London Olympic Mall in time
Westfield has begun work on a £1.5 billion complex of shops, offices and hotels which will act as the main entrance for thousands of spectators to the Olympic Park at Stratford in East London.
But while construction is well under way, worries are growing about the effects a recession in Britain could have and whether the development could end up as a massive white elephant after the Games.
During a visit to the site, London mayor Boris Johnson and Olympic chiefs said they hoped the development would provide a much-needed economic fillip by regenerating one of London's most deprived areas and creating 18,000 jobs.
"I think that Westfield's investment here, the £1.5 billion they are putting into this complex alone, is a stunning vote of confidence in the long-term prospects of the London economy,'' Mr Johnson said.
"This is one of the most highly neglected parts of London.
"It's been a post-industrial wasteland for generations and you're seeing investment going into it now that will produce dividends before the Olympics have even begun.
"I think whatever the temporary problems that the economy may be experiencing, it is the right place to invest.''
Mr Johnson kicked off the countdown to the 2011 opening of the development by braving a downpour to unveil a digital clock which ticks off the approximately 900 days until the first shoppers pass through the complex.
Joining the mayor was the Australian head of the Olympic Delivery Authority (ODA), former Lend Lease chief executive David Higgins.
Mr Higgins, whose job it is to make sure the venues and infrastructure for the Games are delivered on time, said Britain's economic woes had provided some benefits for Westfield.
"As we develop through a slowing economy it means that procurement of construction will be more competitive,'' he said.
"When we first started the project, it was pretty difficult to get contractors to bid. So that's changed completely.
"It's taken the pressure off demand on tradesmen.''
The Stratford development is Westfield's second major project in London.
Its much-anticipated £1.7 billion ($3.6 billion) mall at White City in London's west is due to open on October 30.
Last month as Westfield revealed a fall in half-year net profit because of a credit crunch-related drop in the value of its shopping malls, the company said it had managed to lease about 96% of the space available at White City.
Westfield UK's managing director Michael Gutman said the company was "looking through'' what it believed were short-term problems for the British economy.
"We are very comfortable with our investments in the UK,'' Mr Gutman said.
"I think we are currently in the UK in a fairly difficult environment.
"But we look through those cycles more to the long term.
"We've been in the UK since 2000 and as of today have about £5 billion invested at a gross level in the UK market and we believe over time there is an opportunity to double that investment.''
But while construction is well under way, worries are growing about the effects a recession in Britain could have and whether the development could end up as a massive white elephant after the Games.
During a visit to the site, London mayor Boris Johnson and Olympic chiefs said they hoped the development would provide a much-needed economic fillip by regenerating one of London's most deprived areas and creating 18,000 jobs.
"I think that Westfield's investment here, the £1.5 billion they are putting into this complex alone, is a stunning vote of confidence in the long-term prospects of the London economy,'' Mr Johnson said.
"This is one of the most highly neglected parts of London.
"It's been a post-industrial wasteland for generations and you're seeing investment going into it now that will produce dividends before the Olympics have even begun.
"I think whatever the temporary problems that the economy may be experiencing, it is the right place to invest.''
Mr Johnson kicked off the countdown to the 2011 opening of the development by braving a downpour to unveil a digital clock which ticks off the approximately 900 days until the first shoppers pass through the complex.
Joining the mayor was the Australian head of the Olympic Delivery Authority (ODA), former Lend Lease chief executive David Higgins.
Mr Higgins, whose job it is to make sure the venues and infrastructure for the Games are delivered on time, said Britain's economic woes had provided some benefits for Westfield.
"As we develop through a slowing economy it means that procurement of construction will be more competitive,'' he said.
"When we first started the project, it was pretty difficult to get contractors to bid. So that's changed completely.
"It's taken the pressure off demand on tradesmen.''
The Stratford development is Westfield's second major project in London.
Its much-anticipated £1.7 billion ($3.6 billion) mall at White City in London's west is due to open on October 30.
Last month as Westfield revealed a fall in half-year net profit because of a credit crunch-related drop in the value of its shopping malls, the company said it had managed to lease about 96% of the space available at White City.
Westfield UK's managing director Michael Gutman said the company was "looking through'' what it believed were short-term problems for the British economy.
"We are very comfortable with our investments in the UK,'' Mr Gutman said.
"I think we are currently in the UK in a fairly difficult environment.
"But we look through those cycles more to the long term.
"We've been in the UK since 2000 and as of today have about £5 billion invested at a gross level in the UK market and we believe over time there is an opportunity to double that investment.''
Mon, 22nd Sep 2008