Group Overview

The Westfield Group is one of the largest retail property groups in the world by equity market capitalisation and one of the largest entities listed on the Australian Securities Exchange. Operating on a global platform, the Westfield Group is an internally managed, vertically integrated shopping centre group, undertaking ownership, development, design, construction, funds and asset management, property management, leasing and marketing. It employs over 4,000 staff worldwide.

Westfield has interests in an investment portfolio of 111 shopping centres in Australia, New Zealand, the United Kingdom, the United States and Brazil, valued at A$61 billion. These shopping centres have strong positions in their local markets with geographic, retail and economic diversity providing a strong and consistent income stream. The centres are located in prime trade areas, anchored by long-term tenancies with major retailers and incorporating a wide cross-section of high-quality specialty retailers and national chain store operators.

The table below reflects the Portfolio at the time of the Group's 2011 annual results, in February 2012. In April 2012, the Group announced the divestment of 8 non-core shopping centres in the United States for US$1.154 billion.

 

Westfield Shopping Centre Portfolio¹

	Australia	New Zealand	United Kingdom	United States	Brazil	Total
No. of centres	43	12	5	55	3	118
Total gross leasable area million sqm   (million sqft)	3.6 (38.7)	0.4 (4.7)	0.6 (6.0)	5.9 (63.1)	0.1 (1.1)	10.6 (114.1)
Retail Outlets	11,885	1,711	1,270	8,930	492	24,288
WDC Asset Value (billion)	A$12.6	NZ$1.5	£3.1	US$13.9	n/a	A$32.42
Asset Value - JV Partner interests (billion)	A$19.7	NZ$1.5	£2.6	US$4.4	n/a	A$29.32
Assets Under Management (billion)2	A$32.3	NZ$3.0	£5.7	US$18.3	n/a	A$61.72
WDC Share of Assets Under Management	39%	50%	54%	76%	n/a	57%

¹ As at 31 December 2011 after adjusting for transactions announced in February 2012.
²  WDC and joint venture share of shopping centre assets including work in progress and assets held for redevelopment and inventory.
Note: Exchange rates as at 31 December 2011 were AUD:USD 1.0170,
AUD:GBP 0.6587, AUD:NZD 1.3151, AUD:BRL 1.8974

Business Overview

The Westfield Group's core business activities are explained below.

Property Management, Marketing and Leasing Activities

Shopping centre management involves leasing and day-to-day management and marketing of the centres. Westfield maximises returns by creating an efficient and dynamic environment for retailers and a quality shopping experience for consumers. This requires working closely with retailers to develop a strong relationship and provide an appropriate platform for them to enhance their performance. Westfield also builds strong ties with consumers by supporting the local community of each shopping centre.

Property Development, Design and Construction Activities

Westfield's property development activities are vertically integrated and involve all of the elements of development, design, construction and leasing. Westfield aims to maximise returns on investment by increasing rental income and appreciating the capital value of the asset.

Westfield has extensive experience and a solid track record of completing projects on time and within budget. The Group mitigates much of the traditional risk associated with property development by having lease agreements in place with anchor tenants before commencing construction. In addition, Westfield diversifies the risk of any individual development project by undertaking multiple projects globally at any point in time.

Funds/Asset Management Activities

Westfield also manages assets on behalf of institutional and other investors. This investment is undertaken either on a joint venture basis on specific properties with partners such as Westfield Retail Trust, AMP Capital Investors, Australian Prime Property Fund (APPF), DEXUS Property Group, Forest City Enterprises, JP Morgan Asset Management Real Estate Investment Management, Morgan Stanley Real Estate Management, the Perron Group and Prudential Plc, or as an investor in other forms of property-owning vehicles such as limited partnership arrangements in the United Kingdom with the Possfund and BT Pension Scheme, which are managed by the Hermes Group.

The Westfield Group is also the Responsible Entity of Carindale Property Trust, which is a single-centre property trust listed separately on the Australian Securities Exchange. Carindale Property Trust's sole investment is a 50% interest in Westfield Carindale, one of Brisbane's largest regional shopping centres.