The Westfield Group has interests in an investment portfolio of 118 shopping centres valued in excess of A$63.2 billion located in Australia, the United States, New Zealand and the United Kingdom. These shopping centre portfolios 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 incorporate a wide cross section of high quality specialty retailers and national chain store operators.

Westfield Shopping Centre Portfolio¹

¹ As at 31 December 2007.
² WDC and joint venture share of shopping centre assets and includes work in progress and assets held for redevelopment.
Note: Exchange rates as at 31 December 2007 were AUD/USD 0.8785, AUD/GBP 0.4383, AUD/NZ 1.1341.

Business Overview

The Westfield Group's core business activities are depicted in the following diagram and explained below:

Shopping centre management involves leasing and the day-to-day management and marketing of the centres. The Westfield Group's approach is to maximise returns by creating an efficient and dynamic environment for retailers and a quality shopping experience for consumers. This involves developing a strong relationship and working closely with retailers to provide an appropriate platform so that retailers will have the opportunity to enhance their performance. This is in addition to developing a strong relationship with consumers by supporting the local community of each shopping centre through various marketing activities.

Property development, design and construction activities

The Westfield Group's property development activities are vertically integrated and involve all of the elements of development, design, construction and leasing with a view to maximising returns on investment from both increased rental income and capital appreciation of the asset.

Westfield has extensive experience and a solid track record of completing projects on time and within budget. Much of the traditional risk associated with property development is mitigated by having lease agreements in place with anchor tenants before commencing construction. In addition, the risks associated with any individual development project are diversified by virtue of the number of projects underway globally at any point in time.

Funds/Asset management activities

The Westfield Group is also involved in the management of 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 Deutsche Asset Management, AMP Capital Investors, the Perron Group, Australian Prime Property Fund (APPF), Prudential Plc, JP Morgan Real Estate Investment Management, Forest City Enterprises, Morgan Stanley Real Estate Management, and The John Buck Company, or as an investor in other forms of property owning vehicles such as the limited partnership arrangements in place 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 ASX. Carindale Property Trust's sole investment is a 50% interest in Westfield Carindale, Brisbane's largest regional shopping centre.