westfield - Scentre Group

Westfieldfiftieth

AnniversAry

Westfield Holdings Limited.Westfield Fiftieth Anniversary. Edited by Paul McNally and Margaret Malone.

Includes index.ISBN 978098078513 (hbk)ISBN 0780980783506 (pbk)

Westfield Holdings Ltd. – History.Corporations – Australia – History.

333.33870994

This book is copyright. Apart from any fair dealing for the purposes of private study, research and criticism or review, as permitted under the Copyright Act, no part may be reproduced by any process without written permission. Inquiries should be addressed to the publishers, Westfield Holdings Limited.

Every effort has been made by Westfield to ascertain copyright ownership of images contained herein, however in some cases information regarding copyright is absent or insufficient. Information regarding the copyright of these images is welcomed by Westfield.

Designed by Stephen Smedley, Tonto Design.Produced and published on behalf of Westfield by Hardie Grant Magazines, Australia.General Manager Mark PatonPublishing Director Lisa PatonPublisher Caroline LowryPrinted in Australia by Blue Star Print Melbourne.

Contents

Introduction 6

1956–1959WestfieldStirs 10From Productive Partnership to Private Enterprise to Public Company

1960–1969Determination,DriveandDebentures 28Setbacks, New Frontiers and the Getting of Market Wisdom

1970–1979 TheQuantumLeap 54Restructuring in Australia, Expanding into America

1980–1989RaisingtheStakes 72Keeping the Core Business Strong in a Turbulent Decade

1990–1999BuildingonStrength 96Capitalising on Hard-Earned Gains and Becoming a Global Player

2000–2009AGlobalStructureforaGlobalCompany 114The Westfield Group Comes of Age

Westfield Honours 162

Westfield Milestones 172

Picture credits 174

Index 175

Chairman’s Review – Annual Report 2009 178

6 WeSTfIeLD5 0ye ARS

Introduction

The original delicatessen, opened by John Saunders and Frank Lowy in March 1955. Situated opposite Blacktown railway station, the shop would be full for half an hour after each train came in from the city, with commuters buying the continental small goods that were still scarce at the time in Sydney.

Half a century ago, in September, 1960, Westfield began its life as a public company with two shopping centres in Sydney’s then outer suburbs and two residential developments.

In the space of one business generation, Westfield has grown to become one of the world’s largest shopping centre owners and managers, and is a market leader in Australia, New Zealand, the United States and the United Kingdom. Throughout, it has played a major part in changing the way the world shops.

Over those 50 years, shareholders in the entities which today comprise the Westfield Group have contributed equity of $19.9 billion and received back some $15.6 billion in dividends and distributions. With a market capitalisation at 31 December 2009 of around $29 billion, some $25 billion of wealth has been created for Westfield shareholders.

Since 1960 original shareholders in the Westfield Development Corporation have received a total return of 27.63% per annum, compared with 10.91% for the Australian Stock Exchange index over the same period.

It is an extraordinary story of industry, persistence, inspiration, drive, leadership and creativity, of careful planning and bold execution.

It is a story that is 50 years old, but it seems every decade brings a new beginning …

Westfield and its centres invoke in the minds of shoppers and competitors a specific image of quality that no other shopping centre company has achieved.TheInTeRnATIonALCounCILofShoppInGCenTeRS.

Introduction 7


Right: Sydney, 1958 – the city that would be home to Westfield. Excavation was underway for the Sydney Opera House at Bennelong Point (bottom left) next to the ferry wharves at Circular Quay. The AMP building at the quay was still under construction and the AWA tower was the city’s highest point.

1956–1959 WestfieldStirs

From Productive Partnership to Private Enterprise to Public Company


When the two men who were to found Westfield arrived in Australia after the Second World War, there was not a shopping centre in the entire country.

Serious shopping took place in the cities, where large department stores continued to dominate the retail scene as they had done for more than a century. Women wore hats and gloves and a visit to a multistorey department store, with its sweeping aisles, doormen and stylish windows, was a special occasion.

David Jones, arguably the world’s first department store, had been trading in Australia since 1838. In the wake of its success, other nineteenth-century retail giants such as Anthony Hordern, Farmer’s and Grace Bros opened their doors too.

As the cities buzzed, Australia’s suburbs remained quiet and undisturbed, with little promise of change.

Through their department stores, the so-called ‘dukes

of drapery’ experienced unprecedented growth. By 1896, for example, Anthony Hordern had a showroom 100 metres long, employed 4000 people, conducted six million transactions with customers across its counters and delivered two million parcels in its horse-drawn vans.

By the dawn of the twentieth century, the department store dynasties had become part of Australia’s economic elite, ranking alongside the ‘squattocracy’ of rich wool growers in social prestige. As the century progressed, the dynasties disappeared but many of their names continued.

There is some irony in the fact that today these retail pioneers, whose names are cornerstones of Australia’s economic history, are among the anchor tenants of the regional shopping centres pioneered by two European immigrants whose nous for small business and retailing had its genesis in Czechoslovakia and Hungary.

ThepioneerRetailGiants

Left: Monolithic and eternal – at the turn of the twentieth century it seemed department stores like Anthony Hordern would dominate retailing forever. They provided a world within a world – a place to visit by carriage or by catalogue.

Right: Farmer & Co. in 1912. It was grand, modern, and packed with up-to-date merchandise and imported fashion items. Farmer’s was a place to see and to be seen. How could it not continue to flourish indefinitely?


Towards the end of the nineteenth century, the concept of the ‘shopping arcade’ reached Australia and was embraced with much enthusiasm in Melbourne and Sydney.

Arcades or gallerias, originally an Arabian concept and later refined in Italy, had proved fashionable in London, Naples, Milan, Brussels and Moscow.

Australian builders immediately set to work on a series of lofty and ornate glass-roofed atriums built to house hundreds of new city shops.

They gave them names redolent of Australia’s British heritage — The Strand, The Victoria, The Imperial, The Royal, Her Majesty’s, and The Piccadilly.

Crowds flocked to these contemporary and sophisticated centres to marvel at the marble and iron lacework and to promenade under their chandeliers.

These arcades of the 1890s could arguably be seen as early shopping centres, or at least forerunners of the modern centres built in the Australian suburbs by Westfield over half a century later.

First among these nineteenth-century arcades was Sydney’s Queen Victoria Building, a palatial retail centre bigger than any of its European models, and so ambitious that it was doomed to failure.

It began life as a municipal market, offering the convenience of one-stop shopping. However, although it was a triumph of the visual, its commercial viability was weak. Its ratios were unsustainable, with rentable space sacrificed for public or decorative space.

Suffering constant and unsustainable financial losses, it fell into neglect and disrepair for decades until it was eventually restored, almost 100 years later, becoming what French fashion designer and retailer Pierre Cardin considered to be ‘the most beautiful shopping centre in the world’.

Like all other modern suburban shopping centres, the reborn QVB offered parking on site.

Arcades

The first shopping centres

Stylish, ornate and protected from the elements, arcades offered diversity, interest and a fashionable place to promenade. They were like an enclosed ‘ high street’.


JohnSaundersAs a child, John Saunders would often spend time in his father’s leather-goods shop in north-eastern Hungary. It was the 1920s and as he watched his father negotiating, he never imagined that in a few years he would find himself behind the same counter.

Following his father’s untimely death from illness, John gave up school and committed himself to the business. He was 13 and, with the entrepreneurial flair that would eventually become his trademark, he doubled the shop’s turnover in a year.

Business flourished until 1943 when the pro-Nazi state police singled Saunders out. At the age of 21, he found himself in a detention centre for Jews.

It wasn’t long, however, before he began to extract privileges, managing on several occasions to visit the family home. Through natural charm and intuition he always found a way to better his lot.

Later he was taken to a concentration camp. Driven by his highly developed instinct for survival, he again organised for himself a relatively comfortable situation with good access to food.

When the war was over, he returned home to resume the leather trade and begin a new woodworking business, which thrived, eventually employing 40 people.

But the new communist regime nationalised his businesses without offering compensation, and in 1949 Saunders decided to flee Hungary.

In mid January 1950 his ship docked in Sydney. In his luggage was an English dictionary in which the word ‘impossible’ had been scratched out.

John Saunders, aged 25, in Hungary before migrating to Australia.

195 6 –1959 Westfield Stirs 17

frankLowyGrowing up in a small rural town in southern Czechoslovakia in the 1930s, Frank Lowy witnessed financial hardship at close quarters. His family was of modest means and during his childhood Lowy would help in his mother’s grocery shop. When the Second World War broke out, his family sold the shop and sought sanctuary in Budapest. The family pitched in to help each other out financially and by the age of 13, Frank was assisting his brother who had a small enterprise, buying and selling metalware.

He also had a minor entrepreneurial venture himself. When his formal education ended with the Nazi invasion of Hungary in March 1944, young Lowy was forced to live by his wits. Living mostly on the streets, he quickly learned the value of vigilance and developed a respect for detail that would serve him for the rest of his life.

After the war he left Europe for Palestine and, at the age of 17, became a commando in the Golani Brigade, which was fighting for Israel’s independence. It was during this period that he discovered the power of trust and teamwork. When the Israeli War of Independence ended, he found a job at a bank and studied accountancy at night.

In the meantime, the surviving members of his family had immigrated to Australia. By 1952, propelled by the desire to be reunited with his family, he left Israel and arrived in Sydney on 26 January, Australia Day. All he possessed was a small suitcase, a little knowledge of English and a debt — his airfare to Sydney.

Frank Lowy, aged 21, photographed before leaving Israel for Australia.


In the early 1950s, the recently arrived John Saunders set himself up in business at Sydney’s Town Hall railway station. He had persuaded the authorities to let him have what was no more than ‘a hole in the wall’ from which he could sell sandwiches and smallgoods to commuters who flowed constantly in and out of the station.

It was here that Saunders first came into contact with Frank Lowy, who had a smallgoods delivery run. Lowy, also of similar background, impressed Saunders with his reliability, natural courtesy and accuracy. Saunders never had to weigh the goods Lowy brought because they matched his invoices, neither too much nor too little — right on the mark.

Saunders, who already had several years of business experience in Europe, had a gut feeling that young Lowy, eight years his junior, would make an excellent partner. In him, he saw qualities they shared — energy, drive and a determination to make a success of himself in the new country.

A partnership was duly forged and together they took a step that would set the direction for their commercial future. They both knew the food business and, instead of taking the easier option of opening a new shop in the inner city, they looked to the suburbs for more daring but lucrative opportunities.

The outlying western suburb of Blacktown was on the brink of a boom. The railway had just been electrified and newly arrived immigrants were pouring into the area. Many had come to work in industries associated with the massive Snowy Mountains Hydro-Electric Scheme.

The partners found a vacant shop in Blacktown and telephoned its owner, Jim Simpson, whose reluctance to rent his shop to immigrants eventually gave way as a result of the duo’s persistent badgering.

An hour’s train ride from the city, the shop was situated directly opposite Blacktown railway station, perfectly positioned to catch the tide of daily commuters.

With its barrels of olives and herrings, rounds of cheese, meats and fresh rye bread, it supplied Blacktown’s burgeoning population with continental fare they couldn’t get anywhere else.

As Saunders used to say, ‘In the city delicatessens, Australians buy devon by the slice; in Blacktown, immigrants buy salami by the yard.’

The shop flourished. Just as the suburbs had proved a boon for this first venture, so they would continue to provide the budding partners with undreamed-of opportunities in the future.

GoWest,youngMen!

Right: Robinson’s Street Directory of 1956 showing the route from Sydney to Parramatta and on to Blacktown.

New to Sydney, the pioneering Westfield pair established themselves in an area more than an hour’s drive from the CBD.


Above: 1950s Sydney. The bitumen and telegraph poles of Parramatta Road heading west out of Sydney. Together, and often singing, Saunders and Lowy drove down this road six days a week.

Right: Blacktown’s Main Road in the early 1950s. Not yet a thriving metropolis, the town was on the cusp of dramatic economic change. Soon, the railway would be electrified and immigrants would flood in. Saunders and Lowy would buy the GG store, knock it down and build shops on the site.

195 6 –1959Westfield Stirs 21

Below: A celebration to mark the electrification of the railway in 1955. The next big celebration in Blacktown would be the opening of Westfield Plaza some four years later.


Each day, over the counter at their shop, Saunders and Lowy heard about people who had come to Blacktown but had nowhere to live. The situation was unusual because there was employment to be found in companies like EPT (Electric Power Transmission), an Italian operation which built electric cables for the Snowy Mountains Hydro-Electric Scheme, but no ready accommodation.

The Snowy scheme, described as one of the world’s great engineering feats and perhaps the most imaginative of all postwar Australian construction projects, needed vast supplies of manpower to build a system of dams and tunnels for the development of hydro-electricity and to irrigate the dry western areas of New South Wales.

Although the scheme drew workers from all over the world, most came from Europe. These Europeans would have found outlying Blacktown provincial, if not plain dull. Sensing this, Saunders and Lowy found another shop a few doors down and opened their next business, a coffee lounge. With its tables and chairs on the footpath, music, genuine espresso and continental atmosphere, it offered people a small taste of the life they had left behind.

But something bigger was exercising the partners’ minds — instead of just providing coffee, why not provide houses too!

Between 1954 and 1961 the population of Blacktown almost tripled. It was the biggest increase the area had ever experienced, and to meet the demand for housing, the local council began to rezone farmland for residential use. Typically, it allowed a ten-acre farm to be subdivided into small plots which could then be sold off for £1000 each. Onto these plots, people could bring inexpensive mobile homes.

The process seemed relatively straightforward so Saunders and Lowy borrowed money and plunged in. They persuaded a local farmer that it was an excellent time to sell. Six months later, they were counting their profits, which were encouraging rather than large.

The coffee shop had become something of a talking point in Blacktown, and when a Greek couple offered a staggering £10 000 to buy it, the partners agreed immediately and put their £8000 profit into their next property venture.

Using the back shelf of the delicatessen as an office, they did all the property development work themselves — negotiating the purchase, employing contractors to put down roads, advertising, and then selling off the plots.

While Saunders would converse easily with customers and acquaintances and, in the process, learn about new opportunities for development, Lowy began to learn about the Australian banking system, the value of leverage and the importance of legal documentation.

A solid relationship with the local bank manager helped the partners through many tight squeezes. One minute Lowy would be behind the counter, in his white coat, weighing sausages, and the next he would be in a suit and tie, sitting across the desk from the bank manager. One transaction might have been worth sixpence, and the other £10 000, but to the partners they were equally important — every detail mattered.

Then one day something happened which would change the course of their remarkable lives once again.

BuyingIntotheBoom


Right and below: Following the Second World War, Australia threw open its doors to immigrants. ‘Populate or Perish’ was the slogan of its nation-building drive. Here, immigrants arrive on the ship Empire Brent in 1948. After lining up and posing for an official photograph, they boarded buses waiting to take them away from Circular Quay.


From time to time Erwin Graf, a Hungarian-born architect who was putting up houses around Blacktown, would drop into Saunders and Lowy’s delicatessen to buy lunch. He and the partners would chat about prospects in the area.

When Graf’s company bought some land near their shop and, instead of putting up houses, unexpectedly built half a dozen shops, Saunders and Lowy had a bright idea: they could do that too!

By then their property business had brought them £30 000 and, on advice from their solicitor, they transformed their partnership into a private company. But what to call it? One day, while travelling home from Blacktown together, they hit on the name ‘Westfield’. As they were doing business in the western suburbs, the word ‘west’ was a natural choice and, as they were subdividing farmland, ‘field’ seemed appropriate. It felt right and Westfield Investments Pty Ltd was born.

Energised by their new venture, the pair began searching for land suitable for retail development. They didn’t have to look far because, a short while later, a customer told Saunders that a couple of old shops, owned by a local resident, would be coming up for sale. The shops were around the corner from the delicatessen and, as they were located between the Graf shops and the local post office, well positioned for passing trade. The partners took one look and saw potential. The two existing shops could be pulled down and more built on the same site.

Soon four new shops went up on this site. There was a ready market and they were swiftly sold.

Word quickly spread and the partners were approached by the clothing store Sydney Snow Pty Ltd. Snow’s wanted its own large and spacious new shop next door to the line of four and it wanted Westfield to build it as a package deal.

Neither Saunders nor Lowy knew what a package deal was, but they soon found out, agreed to the deal and delivered. This project yielded Westfield a tidy £8000 profit.

Very early in 1958 Saunders and Lowy were ready to take off their aprons and concentrate on the lucrative margins of the property development business.

The delicatessen was sold for £20 000 and they took offices above some shops around the corner.

Interested in the retail scene, they would devour any international magazines and journals about trends and innovations they could get their hands on. The fastgrowing shopping centre phenomenon in the United States captured their imagination. What was stopping them from getting a piece of the action?

Shopping centres were just beginning to emerge in Australia. In 1957 two centres opened, the Chermside Drive-In Shopping Centre in Brisbane, and the Top Ryde Shopping Centre in Sydney.

Westfield bought an acreage abutting the shops below its office from landlord Jim Simpson and began to plan its first shopping centre. While the plans were on the drawing board, Saunders took a trip to the United States to see this mall phenomenon with his own eyes.

hey,WeCanDoThatToo!


Right and below: 1950s merchandise. A child roadtesting the latest tricycle; men’s suits being carefully inspected.


The official opening of Westfield Plaza in July 1959 was the biggest event in Blacktown since the celebrations marking the electrification of the railway in 1955.

Newspapers described it as ‘the most modern American-type combined retail centre’. People flocked to see it.

The NSW Minister for Labour and Industry, Mr J. J. Maloney, who officially opened the new centre, predicted it would establish Blacktown as a major shopping venue on the now fast and efficient Western Line.

With its supermarket, two department stores and 12 shops built around a courtyard, Westfield Plaza was a showcase for new trends and technology.

Individual shops, harmoniously decorated in accordance with the centre’s colour scheme, were arranged to allow individual expression by their shopkeepers.

There were large show windows, special sprayed plastic finishes ‘carried out under licence to an American

company’, imported mosaic tiles arranged in candy stripes, and stairs with distinctive imported plastic handrails.

From his visit to the United States, John Saunders had witnessed first-hand the importance of the car in the future of shopping centres, and Westfield Plaza provided for its customers 50 free on-site parking spaces.

The centre cost £250 000 and gave the principals of Westfield Investments Pty Ltd their first tough lesson in adapting to council regulations.

Although there were moments when the project looked wobbly, the principals’ determination to succeed never waned.

Within weeks of the opening, Westfield Investments Pty Ltd found itself in great demand as offers of new partnerships and joint ventures flooded in.

Modern,American,Convenientandnew

Below: Westfield Plaza — the modest first link in a chain of shopping centres that was destined to stretch across continents.

Below right: Newspapers of the time described Westfield Plaza as ‘a most modern centre with its own car park, situated in the heart of Blacktown shopping area, only 50 yards from the railway station’. One paper speculated that ‘it could well be the forerunner of a new deal for the harassed housewife who has had to put up with so much in the postwar period’.

Westfield opens its first shopping centre


Having established a base, a reputation, and some working capital, the Westfield partners felt ready for bigger challenges. Were they to base themselves in the city, rather than on its outskirts, it was likely more opportunities would come their way. There, they could mingle with bigger business and be closer to their other projects. So it was that they made the far-reaching decision of keeping an office in Blacktown, while turning their eyes to the CBD and also, as it turned out, to the Sydney Stock Exchange.

ThenextStep

Above: By Christmas 1959, Westfield Plaza was established as the commercial hub of Blacktown’s 100-odd businesses and services. With the railway line and parking, it attracted shoppers from all over the area. For people in outlying districts, there was also a bus network to bring them to the ‘progressive shopping centre’.

From Blacktown to the city

Setbacks, New Frontiers and the Getting of Market Wisdom

1960–1969 Determination,DriveandDebentures


The success of the newly formed Westfield Investments venture in Blacktown caught the attention of developers all over Sydney and within weeks of Westfield Plaza’s opening, Saunders and Lowy found themselves in demand, with offers of joint ventures, partnerships and commissions coming from unexpected quarters. They immediately took up several of these offers. With one partner they bought more land for subdivision in Blacktown; with a consortium they bought land at Turramurra in the northern suburbs of Sydney; and for Snow’s they undertook a large contract to build new stores at Cabramatta and Penrith.

Typically, Saunders and Lowy would contribute 20 per cent of the capital, and the financial partner the remaining 80 per cent. These deals required moving thousands of pounds around and, from time to time, Westfield’s overdraft was fully extended. The local bank manager saw their potential, trusted them implicitly and would give them short periods of grace. One day, however, a supervisor from the bank’s head office discovered they were £15 000 over their limit and was apoplectic. However, such was the bank manager’s trust in Saunders and Lowy that he wrote out a personal cheque to cover this amount.

Although Westfield Investments was the proverbial honey pot of Blacktown, with people and activity buzzing around

it, Saunders and Lowy knew opportunities in the city would be greater. So, after taking the precaution of setting up new contacts, they made the move to Caltex House in the CBD, which was the first modern high-rise office block in the city. Westfield took along a handful of employees including an accountant, a builder and a scout to look for new projects, and leased a modest amount of office space. As before, Saunders and Lowy shared an office.

From their new premises they began to make fresh contacts and were persuaded by a fellow Hungarian immigrant, Paul Kent, then managing director of the publicly listed Astor Consolidated Mills Ltd, that there would be tremendous advantages in taking Westfield public. It would, he argued, raise funds which they could use for bigger, more lucrative developments. After much deliberation, Kent introduced Saunders and Lowy to the principals of stockbroker Clarence Degenhardt and Co. He in turn introduced them to Don Stephens, chairman of the publicly listed transport company FH Stephens, and suggested Stephens be chairman of the new publicly listed Westfield. Stephens had ‘establishment’ contacts and would be able to open doors.

TotheCBD

Saunders and Lowy made the move from Blacktown to Caltex House in the CBD — the first modern high-rise office block in the city.

19 6 0 –19 6 9Determination, Drive and Debentures 31

Above: Caltex House in 1959, the year Westfield moved in.


By the time the company went public, Saunders and Lowy had already successfully undertaken many projects including obtaining a site for a motel in Sydney’s North Shore, subdividing for home building sites, and building shopping centres. Although Westfield Development Corporation Ltd, as the public company would be known, would concentrate on real estate and property development in general, the prospectus highlighted the fact that it would retain a special focus on shopping centres. It predicted there would be a rapid expansion of shopping centres in Australia and noted that both Saunders and Lowy had given undertakings that they would not engage in shopping centre developments other than through this company. In what would later prove to be a remarkable understatement, the prospectus also stated that shopping centres ‘would yield satisfactory returns’.

It was decided that four of Westfield’s projects would be put into the public company. These included a recently acquired site at Hornsby, on the northern outskirts of Sydney, a shopping centre under construction at Sutherland, and residential developments at Pennant Hills and St Ives. On the strength of these projects, Westfield Development Corporation Ltd floated in September 1960.

The issue was for 300 000 ordinary shares priced at 5/–, half of which was payable on application, so raising £75 000, with a further £75 000 payable by January 1961. There was also an issue of 300 000 unsecured convertible notes at 5/– each. About 38 per cent of the stock went to the public, 20 per cent went to Kent, with Saunders and Lowy each owning half of the remaining 42 per cent. The board comprised founding chairman Don Stephens, Paul Kent, Saunders and Lowy.

The float brought a change in banking relationships for Westfield. The bank that had been so helpful a few years earlier was not willing to support this bold step. Despite the move to the city, the pair had continued their relationship with the bank at Blacktown. However, the size of the loan was beyond the capacity of the local bank manager with whom Saunders and Lowy had enjoyed such a good rapport. When this manager referred the application to his head office, it was rejected. The risk was too big. Paul Kent then decided to introduce Westfield to his banker, the National Bank of Australasia, which later became the National Australia Bank. Fifty years later the relationship between Westfield and National Australia Bank continues.

Thefloat

Left: A call at the Sydney Stock Exchange, 1960.

Right: The Sydney Stock Exchange building, 1960.

Left and below: Anyone who invested £500 in this float in 1960 and kept the shares for 50 years – provided they reinvested all dividends and bonus issues – would have, by the end of 2009, made about $159 million (according to ASX/S&P Index Services). This investment return is unrivalled in Australia.

In 1959, while young Kerry Stephen was serving on HMAS Tobruk in the Far East, most of his fortnightly wages were going directly into his bank account in Sydney.

He was a naval lieutenant with the Royal Australian Navy ships deployed to assist during the Malayan Emergency and had little opportunity to spend money. For ten months, his bank account grew steadily.

When he eventually returned to Sydney in 1960, his father Alex, who was aware of the money he had saved, had some financial advice for him. ‘Buy yourself some Westfield Development Corporation shares,’ he said.

Kerry, then 22 years old, had never owned shares but had faith in his father’s judgment. He withdrew a few hundred pounds — his life savings and accumulated wages — and bought directly into the Westfield float.

It was the best investment he would ever make. In the first few years, before he started a family, he would reinvest all the dividends and bonuses.

‘With five children and a Navy salary it was difficult, if not impossible, to put them all through private schools. However, by owning Westfield shares it was possible. Every time school bills arrived, I would be able to sell some of my Westfield shares,’ Kerry says.

‘I have continuously owned Westfield shares for 40 years and still have a few left. I know that if I’d kept them all, I would have many millions of dollars today, but my children would not have had the start in life that they have been given.’

Kerry Stephen AM left the Navy in 1986 with the rank of Commander and has no doubt that the investment he made 40 years ago changed the course of his and his family’s life.

‘I will always be grateful for my father’s advice and Westfield’s growth,’ Kerry says.

KerryStephen

‘All on my father’s advice … ’



Left: Westfield Plaza shopping centre, Hornsby, Sydney, New South Wales, September 1961.

Right: Putting up advertising billboards for the Hornsby centre prior to its construction.

After the buoyant economic activity of the late 1950s, Westfield’s maiden year as a public company in 1960 was marked by a severe credit squeeze, the first of many to befall the fledgling company. This did not augur well for Westfield which urgently needed funds for several crucial projects. At the time, it was impossible to foresee that the 1960s would eventually become one of the most prosperous periods in Australia’s economic history.

The 1960s were all about opportunity. Australia’s population in 1945 was 7 million; by 1963 it was 11 million. Car ownership, a key factor for retailers who offered parking, grew from one vehicle for every nine people in 1945 to one for every three by 1968. Spending was booming too. New suburbs were appearing everywhere. In 1947 some 47 per cent of families did not own their own homes. By 1961, 70 per cent were homeowners or mortgage payers.

It was also the decade which would see the Vietnam War tear at Australia’s heart and in which, in 1966, the new decimal currency came into circulation.

Into all of this came television and its bountiful opportunities for advertising.

Commercial television and retailing seemed made for each other. Television stars began ‘launching’ new supermarkets and soon politicians followed suit.

Even the Prime Minister, Sir Robert Menzies, agreed to speak at the opening of a supermarket in Canberra in 1963. The grandson of a grocer himself, he described the supermarket as ‘the last word in shopping facilities’.

In 1960, Westfield most pressingly needed funds to complete the shopping centre at Hornsby, but there was a building industry recession and banks and finance companies were unsupportive of shopping centres. Westfield was also an unknown quantity and banks didn’t feel comfortable taking the risk. To get out of the squeeze, Kent approached his stockbrokers again, who agreed to underwrite a £150 000 debenture issue.

By the time the prospectus for this issue was published in 1961, Westfield had refined its business focus to acquiring and developing carefully selected projects for retention as income-producing investments; and to acquire real estate for development and re-sale.

Because of rising interest rates, the timing of the debenture issue was poor and it closed three months later raising slightly more than half of the amount sought. The underwriter honoured its agreement and Westfield was saved from serious financial hardship. Westfield also managed to obtain some help from T&G Insurance company (later AXA), which came in as a long-term lender, assuring the future of the Hornsby centre.

AWobblyStarttoaprosperousDecade

Westfield’s maiden year


Brisbane was the home of Australia’s first-ever shopping centre. The Chermside Drive-In Shopping Centre, which opened in May 1957, was built by Allen & Stark Ltd and was the first development of its kind outside of the United States. Because of its free off-street parking for 700 cars, it was marketed as ‘an island of retailing in a lake of parking’. It was such a noteworthy development that a crowd of more than 150 000 shoppers gathered to watch the Premier of Queensland, Jack Duggan, turn the key at the main entrance.

Chermside went through numerous redevelopments, survived storms, floods and fires and, just before its

fortieth birthday, was purchased by Westfield and became Westfield Shoppingtown Chermside. A few months later, it was ravaged by yet another hailstorm.

Shortly after Chermside’s debut, in November 1957, the Top Ryde Shopping Centre opened its doors in Sydney. It drew shoppers from far afield who wanted to avail themselves of excellent service and a variety of quality merchandise which could be had all under the one roof.

Westfield Plaza in Blacktown was considerably smaller than Chermside and opened next, in July 1959. The following year, a blockbuster shopping centre opened in Melbourne.

Australia’sfirstShoppingCentres

Below: The opening of the Chermside Drive-In Shopping Centre in Brisbane, 1957.


Right: The Top Ryde Shopping Centre, Sydney, in 1958 – the second shopping centre in Australia.

Below: The covered bus port and facade of the main building of Chermside, 1957.


In October 1960, an important event in Australian retailing took place in Melbourne. The country’s biggest regional shopping centre, Chadstone, opened. It had cost £6 million, housed 83 retailers, had parking for 2500 cars and, in every way, was state of the art. Built by the Myer Emporium, it was described as ‘a town within a town’ and was said to represent a turning point in retailing.

As much as they yearned to be on the guest list, Saunders and Lowy did not receive an invitation to the opening. Undeterred, Saunders flew to Melbourne, took a taxi out to Chadstone, crawled under the fence, being careful to protect his suit, and mingled with the crowd. He had a splendid morning, looking around, admiring the features, noting the innovations and listening carefully to the speeches. He collected as much information as he could, left via the official exit and hailed a taxi for the airport.

Nothing that he had picked up went to waste. In fact, Saunders was an obsessive reader of newspapers, magazines and journals — anything that provided new ideas that could augment the business. One such idea he was extremely keen on was the motel.

In 1959, Saunders and his wife had travelled to an international shopping centre convention in Las Vegas and, along the way, went motel sightseeing between San Francisco and Los Angeles. There were very few motels in Australia and those were shabby and poorly serviced. In contrast, US motels were pristine and

the rooms had televisions, refrigerators and modern bathrooms. Inspired, Saunders returned home with plans to build a high-quality motel in Sydney. A few months later, Lowy would make a similar reconnaissance of motels and shopping centres along the US West Coast, but this time accompanied by an architect, Emery Nemes. Together, they measured and analysed and checked and rechecked and, by the time they returned to Australia, they had the business mapped out.

Westfield found a parcel of land north of the Sydney Harbour Bridge on the Pacific Highway and began the planning for the Shore Motel. One afternoon, while Saunders was checking progress at the site, a man approached him claiming to be a Swiss graduate of one of the famous hotelier schools. Saunders hired him as manager on the spot.

This was typical of Saunders’s instinctive style of business and by 1962 the Shore Motel had exceeded even the company’s high expectations. Years later, it would be expanded, gain an exotic Spanish-style façade, complete with a tower, become a local landmark and be renamed the Shore Inn.

Saunders’s unconventional hiring practices were on display again in the 1980s, when he invited a chef in Hungary to work at the Shore Inn. The chef accepted and the Shore Inn flourished. It has since undergone another transformation, being converted into an apartment building.

ChutzpahandtheGatheringofIntelligence

The Shore Motel

Left: Chadstone shopping centre, Melbourne, in 1960.


Below: The Shore Motel, Pacific Highway, Artarmon, in Sydney’s North Shore, as it was in 1962. This was Saunders’ ‘baby’, a project that he took a great personal interest in and nurtured. When he left Westfield, in the 1980s, he bought it for himself.


While the Hornsby centre was going up, one prospective tenant, the grocery chain Matthew Thompson, was taken over by the large Melbourne retailer G. J. Coles. Coles wanted to enter New South Wales and expand beyond its variety range into food.

Lowy approached Coles and managed to persuade the company to take space in the new Hornsby centre. During the negotiations, he and Saunders met Coles’ chairman, Sir Edgar Coles, and mentioned they had a couple of other suburban sites the newly arrived Coles may well find suitable for its expansionary plans.

Sir Edgar, impressed by what he heard, sensed potential in the relationship with Westfield and commissioned it to build more supermarkets.

With Lowy and others, he would drive around Sydney and its environs in a chauffeur-driven car, looking for well positioned sites in densely populated suburbs with poor retail services. Sir Edgar would sit in the front seat and, through the window, point and say, ‘Get me a site here and get me a site there.’

‘And we did,’ remembers Lowy. ‘It was music to our ears.’

Westfield quickly understood exactly what Coles required and deployed scouts to locate sites. In the early 1960s, in a matter of three years, it had built seventeen supermarkets for Coles, and played a major role in getting Coles established in New South Wales.

‘Musictoourears’

Opposite: Three examples of Coles supermarkets built by Westfield in the early 1960s. From top: Baulkham Hills, Liverpool, and Gosford.

Coles expands into New South Wales

A beaming Frank Lowy. Seventeen supermarkets for Coles in three years spelt success for Westfield.


When the Hornsby shopping centre began trading in the early 1960s, it initiated a social shift across the shire. Up until then, the area had suffered from a lack of welcoming meeting places in which people could congregate. Unlike, for example, the piazzas in Italy, there were no designated spaces in the built environment where people could gather. There was just bland suburban sprawl.

Although Hornsby had experienced considerable population growth, its retail heart had remained static.

Westfield changed that. With a department store, hardware store, 22 shops, a supermarket and ample parking, it drew in people from all over the district. It

generated new jobs and the suburb buzzed with activity. Although the primary function of retailing has always

been about the exchange of goods and services for money, its secondary function has been to provide an environment for social interaction. Westfield recognised this early on and concentrated on promoting this secondary aspect. While ensuring the commercial fundamentals were sound, it placed great importance on community needs, and on providing a place for people to meet and have an experience so pleasurable they would want to do it over and over again.

TheAussiepiazza

An unexpected development


By its third year as a public company, Westfield had experienced considerable growth in its operations. The economic shakiness of its early months was but a memory and the company was on firm and lucrative ground. Not only had business opportunities increased but Westfield had evolved into a one-stop shopping centre company. It did most things for itself — it built, planned, designed and developed all within its own organisation. This resulted in the construction of highly efficient centres with low capital costs.

By the end of 1962, Westfield had these eight projects either completed, on the drawing board or under way in metropolitan Sydney.

Growth,Growth,Growth…

Left: An architect’s drawing of the proposed Hornsby development.

Right: Westfield’s eight projects in Sydney by the end of 1962.

Westfield’s third year


Large stores, such as Mark Foy’s in Sydney, dominated retailing in Australia between the wars. Many such stores had become prosperous enough by the end of the nineteenth century and the beginning of the twentieth to erect impressive, ornate buildings. They had also become household names, trading on customer goodwill and faultless reputation.

After the First World War, these grand retailing houses quickly detected the public’s need to put faith in the country’s institutions. Thus they promoted themselves as bastions of traditional values and patriotism and, when the

Second World War loomed, became involved in the war effort.

The culture of these big retail institutions was largely British. All had well-established London buying offices, UK-trained managers and ran promotions like ‘Empire Week’. Tremendous value was placed on the phrase ‘British Made’. When it was used to describe merchandise, it was synonymous with quality.

The big stores actively exploited the gulf between the city and the suburban shopping experience. The city was cosmopolitan and in the big stores customers were made

howDidThis…BecomeThat?

Right and opposite: The grand and commanding Mark Foy’s department store, set on a full city block, Sydney, 1939 …

Australia’s grand retailers


to feel important. Staff were excessively polite, liveried doormen opened doors and made polite greetings, and customers could choose to be personally guided through the store during their visit. There was an exaggerated emphasis on ‘good service’.

However, by the 1930s chainstores offering cheap merchandise which customers could pick off the shelves themselves were flourishing in the suburbs. These American forerunners of modern self-serve supermarkets began emerging at the beginning of the Depression. The busy atmosphere, the goods on open display, the ability to examine merchandise, the bins and ‘cash only’

transactions gave the impression of bargain shopping. In fact, the first Woolworths was set in a basement and became known to its customers as a ‘bargain basement’. The resurgence in suburban retailing began to affect the city retail houses.

Eventually, only large stores in the very heart of Sydney, such as David Jones and Gowings, remained in place. Those just outside the heartland, such as Mark Foy’s, struggled on futilely. Despite their size, range and priceless street frontage, these stores couldn’t survive. Ironically, what did survive in the Australian idiom was the saying, ‘He’s got more front than Mark Foy’s.’

… and downsized in Westfield’s Eastwood shopping centre, 1964.


In 1966, when Burwood Shoppingtown opened six months ahead of schedule, it was hailed as one of the most beautiful and finely detailed air-conditioned indoor shopping centres in the world. Its trade area potential covered more than 150 000 people with a total annual retail expenditure of over $100 million.

For Westfield, the Burwood centre represented many firsts: • It was the first centre to open with a major department

store. In this case it was the leading national

department store chain, Farmer’s, and Burwood marked the beginning of a long and fruitful business relationship between the two companies.

• It was also the first centre to benefit from a major marketing effort. As part of that campaign, it became the first to be branded with the Shoppingtown logo and to use the Westfield ‘family of five’ in its advertisements.

WestfieldComestoTown

Burwood Shoppingtown

Above: A Westfield advertisement in The Sun newspaper, October 1966.

By the second half of the 1960s, shareholders in Westfield would have had good reason to congratulate themselves on their investment. A shareholder who invested $1000 in the company in 1960 had, by 1965, an investment worth $2817, assuming that all dividends and other benefits were invested in additional shares. Over the next five years, this investment would soar to $16 850.

During this five-year period of unprecedented growth, Westfield completed major projects every year. It was busy expanding beyond not only Sydney, but beyond New South Wales.

In 1965 it completed a supermarket for Coles and opened a shopping centre at Figtree in Wollongong, south of Sydney. The following year it completed another Coles supermarket and then opened the Burwood centre six months ahead of schedule.

Not stopping to draw breath in 1967, it established a conspicuous presence in Queensland with the opening of the Toombul shopping centre.

In the meantime, it had been renovating and enlarging the Hornsby centre to four times its original size and opened this new redevelopment in 1968.

Then, in 1969, it bought the ailing Miranda centre from Farmer’s (now part of Coles Myer) and began to remodel it. This year also saw Westfield make its debut appearance in Victoria with an impressive new centre at Doncaster.

BuildingupaheadofSteam


Right: The Sun newspaper reporting on the development of Burwood Shoppingtown and featuring the Westfield family of five.

Expanding beyond Sydney


GrowthRecord($’000s)1961–1970

Right: The Dee Why centre going up on Sydney’s northern beaches.

Monthly Net IncomeIncome Type Amount

Monthly Net Income

Other Monthly Income

$4,500

$2,500

Available Cash $7,000

Monthly ExpensesExpense Costs

Mortgage

Taxes

Car Payment

Car Insurance

Home Owners Insurance

Cable Bill

Gas/Electric

Monthly Prescription

$2,300

$600

$350

$60

$127

$120

$88

$50

Total Monthly Expenses $3,695

Growth Record ($'000s) 1961–1970Income and Expenses 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970

Net Profit (After Tax) $54 $2,226 $2,815 $3,098 $3,210 $5,097 $6,207 $10,448 $14,903 $33,748

Net Profit (After Tax) $54 $119 $147 $164 $182 $216 $231 $333 $520 $703

Additional IncomeDetails Month Amount

Mid Year Bonus

Year End Bonus

June $2,000

December $3,000

January

Total Additional Income $5,000

Planned ExpensesExpenditure Month Amount

November vacation

Home for the holidays

Gifts for family

Family vacation

November $450

December $600

December $300

July $880

January

January

January

January

Total Planned Expenses $2,230

0

200

400

600

800

0

200

400

600

800

1961 1963 1965 1967 1969

1.Enter your income information in the two income tables.

2.Enter your expenses. Use the Monthly Expenses table for recurring expenses.

3.Enter a starting balance in the January column on the Annual Budget table.

Personal Budget


Monthly Net Income


$4,500

$2,500



Mortgage

Taxes

Car Payment

Car Insurance


Cable Bill

Gas/Electric


$2,300

$600

$350

$60

$127

$120

$88

$50



Total Assets $1,426 $2,226 $2,815 $3,098 $3,210 $5,097 $6,207 $10,448 $14,903 $33,748

Total assets $1,426 $2,226 $2,815 $3,098 $3,210 $5,097 $6,207 $10,448 $14,903 $33,748


Mid Year Bonus

Year End Bonus

June $2,000

December $3,000

January



November vacation


Gifts for family

Family vacation

November $450

December $600

December $300

July $880

January

January

January

January


0

10 000

20 000

30 000

40 000

0

10 000

20 000

30 000

40 000

1961 1963 1965 1967 1969




Personal Budget


Monthly Net Income


$4,500

$2,500



Mortgage

Taxes

Car Payment

Car Insurance


Cable Bill

Gas/Electric


$2,300

$600

$350

$60

$127

$120

$88

$50



Stockholders’ Funds $761 $1,021 $1,236 $1,337 $1,421 $1,644 $1,943 $2,115 $4,665 $9,207


Mid Year Bonus

Year End Bonus

June $2,000

December $3,000

January



November vacation


Gifts for family

Family vacation

November $450

December $600

December $300

July $880

January

January

January

January


0

2500

5000

7500

10 000

0

2500

5000

7500

10 000

1961 1963 1965 1967 1969




Personal Budget

Total Assets Net Profit (After Tax) Stockholders’ Funds


Westfield’seightRulesofShoppingCentreDevelopment

As explained to investors in a pamphlet in 1968

1SiteSelectionA site is selected only after careful assessment of what the future development of the total environment is likely to be.

Surveys are often conducted in liaison with major retailers who then become important merchants — magnets for customers in the completed centre.

2DesignThe design department at Westfield takes in needs and aspirations of the entire potential customer base. The social and economic background of the trading area is considered in the creation of a pleasant, harmonious atmosphere. Special architectural features, shopfront designs, commissions from outside clients and the many merchant and customer facilities are brought together to stimulate the best trading conditions.

3LeasingFor continuous and sound trading, it is essential that the ‘balance’ of shops in a centre be wide and varied — emulating the traditional facilities of a shopping precinct in a normal town. To achieve a good balance of retailers, leasing begins at an early stage of the design.

4ConstructionFor this, a very high degree of organisation is required. The building division of Westfield controls the detail and finish of the project according to the total concept. Using the latest techniques and time-planning control methods, constructions are completed in the shortest possible time.

Westfield builds for itself and other developers.

5financingFinancing of multimillion-dollar centres is managed by a group of specialised executives under central finance control. The capital structuring of each project requires individual attention and a decision has to be made whether, on completion, the project will be: 1. owned straight out 2. jointly owned

3. sold outright 4. sold and leased back

Each requires a different approach to funding and is handled by the company’s own specialist in each field.

6ManagementStaff chosen for management positions will have already experienced the retail field. They have to manage the complex requirements of the retailers, the customers and the facilities.

Further training in such tasks is provided by sending staff to courses and conventions in the United States and other countries. Westfield is a member of the International Council of Shopping Centres, which ensures it is well placed to study all development trends in retailing anywhere in the world. Where applicable, these ideas are implemented.

7promotionPromotion is the active spearhead of the combined efforts of developer, landlord and merchants within a centre. Continuous study of changing fashions is undertaken so that promotions fulfil the entire merchandising needs of communicating to the widest possible audience. A Merchants’ Association is established within the centre. After Westfield has organised this association, it continues to play an active role, with staff and financial assistance, to ensure that merchants obtain the maximum benefit from combining their own promotional efforts.

8CateringtotheCustomerThe shopping centre aims to meet the sophisticated tastes of modern shoppers, stimulate their imaginations, elevate their sense of wellbeing and widen their everyday world, linked as it is, to other forms of mass communication. By providing an atmosphere of excitement through the visual, aural and tactile senses, the centres attempt to generate an ever-increasing trade potential.

All ages are catered for. For children, there are nurseries, playgrounds and entertainment. Music, food and clothing stores encourage teenagers to use the centres as gathering points. For the housewife, shopping becomes a pleasure, with easy access and everything under one airconditioned roof.


Queensland

Withexpansionaryeyes,WestfieldGoesInterstate

Right: An aerial view of Toombul Shoppingtown under construction, showing the canal.

Moving beyond New South Wales

In the mid 1960s Westfield turned its attention to Queensland. John Lowy (brother of Frank), together with an engineer who was familiar with Brisbane, found a site at Toombul – shown to them by local real estate agent Donald Petrie – 10 kms from the CBD and superbly located in the middle of a densely populated area. When Saunders and Lowy later saw the site they instantly realised its commercial potential and took an option over it.

But there was a problem. The Chermside centre was nearby and housed a Myer department store, making it

difficult for Westfield to attract another department store as its anchor tenant. After some effort, Westfield finally found a secondary department store and secured a Coles supermarket. However, that wasn’t the end of its worries. As Westfield was an unknown quantity in Brisbane, how was it to fill the 60 untenanted shops? Frank Lowy took on the job with Petrie and walked the streets of the CBD, calling on retailers to attract them to the new centre.

The effort paid off. When the Toombul centre opened 100 per cent leased in 1967, it was Brisbane’s first fully air-conditioned drive-in centre with parking for 1500 cars.


Victoria

Right: An architect’s early sketch of Doncaster Shoppingtown.

While Toombul was opening, so Westfield was busily constructing its biggest centre at Doncaster in Melbourne.

It had been offered this golden opportunity by Coles, which wanted a supermarket in the affluent and fast-developing area of Doncaster but wanted it bundled with a major department store; in particular, a Myer store. Coles had the land but lacked the expertise to put such a project together. Westfield was called in.

Westfield could see the potential. Nearby orchards and farms were being rezoned for residential and commercial uses and new roads were being constructed. It readily

accepted the offer to buy the land and build a shopping centre meeting Coles’ requirements.

Thus, in 1969, with much fanfare, the then Premier of Victoria, Sir Henry Bolte, opened the $12 million, fully air-conditioned Doncaster Shoppingtown. It had 80 shops, five major stores, a tower with professional services and amenities, and parking for 3000 cars.

It had been financed on a sale-and-leaseback arrangement with Temperance and General and was Westfield’s eighth major centre development. Like the original development at Hornsby, it provided extra stimulus to community growth in the surrounding area.

Restructuring in Australia, Expanding into America

1970–1979 TheQuantumLeap


Unsettled conditions in the 1970s tested everyone in the Australian property market. Investors who had been burnt in the sharemarket boom–bust of the late 1960s and early 1970s had turned to property, hoping to find stability. Instead, by 1974, world oil prices had quadrupled and economic pain was being felt everywhere.

In Australia, inflation peaked at over 20 per cent and a liquidity squeeze saw interest rates rocket. Bank bills hit 17 per cent and the short-term money market was paying up to 25 per cent for overnight cash.

The tough conditions led to the collapse of five major property companies that year, the biggest of which was Cambridge Credit Corporation. Confidence in property companies and their financiers slumped. Even the Australian Stock Exchange reduced its trading hours.

Liquidity problems forced the closure of the well-known sharebroking firm, Patrick Partners. In early 1979,

Associated Securities Ltd, Australia’s fourth-largest finance company, collapsed, affecting thousands of investors.

While Westfield went through some very tight squeezes, it expanded steadily during this turbulent decade, confirming the theory that the shopping centre business can be counter-cyclical.

In the 1970s, investors in Westfield saw the value of their shares multiply many times over. Apart from the dividend doubling from 10 per cent to 20 per cent, investors were also the recipients of four bonus share issues, culminating in a capital reconstruction which further increased their wealth more than eightfold.

Against the background of economic hardship, Westfield spent the decade improving properties it already owned, building major new centres and expanding offshore into the United States, the home of the shopping centre.

flourishingInToughConditions

Right: Shoppers pick up some bargains in 1974.

1970 –1979 The Quantum Leap 57

Mr J. Saunders Mr D. R. Stephens (Chairman) Mr F. P. Lowy Mr L. L. Winter Mr R. W. Stevens (Secretary)

Above: The board that saw Westfield through the financial turbulence of the 70s, and then into new financial territory, bringing profits that could never have been anticipated. The four members of this board remained in place for 15 years from 1965. It was only in 1980, when Leslie Winter reached the statutory age for retirement, that a change took place. David Lowy, Frank’s eldest son, took Winter’s place.


In the early 1970s, Sydney City Council had a grand vision for Sydney. It wanted to transform the eastern entrance to the city from a windy traffic corridor into a sweeping, stylish boulevard. In short, it wanted to turn William Street between Kings Cross and the Town Hall into Sydney’s own version of the Champs-Elysées. Westfield played a key role in implementing this urban ‘renaissance’.

Westfield had acquired some 2.6 acres fronting William Street and intended to develop this in stages over the next few years at a total cost of about $60 million as an office block, a hotel and convention halls all linked by galleries, shops and terraces.

A new division was formed within the company for the purpose of multistorey commercial developments, and for its first project, it took on Stage One of the William Street development. This entailed building the 24-storey office block and, immediately next door,

a 280-suite international-standard hotel and two levels of retail shops. This initial stage of development would take up less than an acre of the vacant land and cost $13 million.

As Westfield Towers and the Boulevard Hotel were going up, the recession of the early 1970s hit, the council’s enthusiasm for the project waned and other developers fell away. Westfield was left with Stage One completed. The rest was scaled down.

Westfield decided to lease the hotel on a long-term basis. Because Westfield Towers was just outside the CBD, it took some years for it to achieve full occupancy. The ‘Champs-Elysées’ idea was revived from time to time but no action ever followed the enthusiasm. When Saunders retired from Westfield some 15 years later, he bought the remaining land and built an office and residential complex on it.

DreamingoftheChamps-elysees

Right: The Westfield Towers complex, the only piece of the ‘Champs-Elysées dream’ to see the light of day.

Below right: An artist’s rendering of how the grand complex should have looked (red dots). Ultimately, only the outlined section would be built (yellow line) by Westfield. Drawn in 1969, the plan includes the proposed Eastern Distributor which only became a reality 30 years later.

Right: A view of William Street in the early 1970s – a short stroll from the buzz of the CBD.

William Street, Sydney

This is the question Saunders and Lowy were regularly asked. Every time Westfield put up a new centre, people inquired just how many more the market could take before it was overloaded. Each time they came up with the same answer — ‘five years’.

As the years rolled by, the notion of ‘five years’ eventually became something of a joke, but their genuine concern about Australia’s limited capacity for shopping centres gave them reason to pause and reassess the options for Westfield. The company could go offshore and build shopping centres in another country or it could remain in Australia and diversify through other kinds of building projects. Of course, it could also do both!

With this in mind, in 1972 Westfield began to step up its activities in the commercial property sector.

Lowy told the media at the time that over the preceding decade more than $80 million had been spent by Westfield on shopping centres and the group envisioned a long-term tapering off in development activities in this area, although a number of new centres were planned for the future.

A few months later, Westfield and the Swiss Insurance Group joined forces in a $10 million skyscraper office development in Queen Street, Melbourne.

In the early 1970s, the company also took on contracts for the design and construction of a $3 million multistorey commercial development in Redfern, Sydney, and a $1 million Woolworths Family Centre at Campsie, also in Sydney.

Despite Saunders’ and Lowy’s anxieties about the market’s limited capacity, Westfield went on to reap the rewards of a bonanza of a decade for the property sector.

‘howLongCanitLast?’

Another five years?

1970 –1979The Quantum Leap 59

Many of the big-name stores that dominated Australian retailing in the first half of the twentieth century had all but disappeared by the beginning of the twenty-first.

In their day, they had dominated in size, reputation, name and service. Then, it seemed the likes of Farmer & Co, Foy’s Ltd, Anthony Hordern & Sons, Sydney Snow Ltd, Ways, Winns, Waltons, Western, McDowells, Marcus Clarke, and Nock and Kirby would last forever.

Some became embroiled in complex takeovers, some were sold in sections and some joined forces and continued for a limited period before being subsumed by a third party. A few struggled on until defeated by the modern economy and others just petered out. Those that survived, in one form or another, such as David Jones, Myer and Grace Bros, Coles and Woolworths, continued to trade into the new century.

• In 1960, for example, the grand Farmer & Co, which had played such an integral role in so many Australians lives and had absorbed other retailers, such as Ways, acquired for itself twelve Western Stores in the countryside to meet retail growth in those areas. Later that year, it merged with Myer of Melbourne and then disappeared from the retail scene when its stores were retired and renamed Grace Bros.

• After Foy’s flagship store in Sydney lost clientele because of new transport systems and altered pedestrian traffic flow in the city, it was sold to Grace Bros. Its branch stores were sold separately.

• Income from the Federal Government for the use of its buildings during the Second World War helped to relieve some of Grace Bros’ retailing problems and it went on to open several suburban stores in the 1950s and 1960s. Later it was taken over by Myer which, in turn, was taken over by Coles. Myer traded for some years as a division of Coles before being sold to a private equity group. It was then listed in 2009.

• Horderns suffered badly in the Depression and the valuable city site was ultimately sold to an overseas construction company.

• Following the Depression, the Second World War, book debts and the closure of its mail-order catalogue trade, Marcus Clarke accepted a takeover offer from Waltons in the 1960s. In the 1970s Waltons took over McDowells and then was itself taken over by the Bond Corporation in the 1980s. Soon after, it vanished from the retail landscape.

• For Snow’s and Winns, business dwindled steadily until Snow’s sold out and Winns closed its doors.

Whateverhappenedto…


Right: A Waltons department store in the 1970s.


Left: Winns department store, Hunter Street, Newcastle 1972.

Below: Anthony Hordern Palace Emporium, George St, Sydney.


In its first decade as a public company, Westfield continually fine-tuned its financial strategy. It dropped residential development and began to concentrate on the investment aspect of its business. To free up capital for further development, it entered into sale–leaseback arrangements.

Three years later it improved the way it financed developments by using short to medium term finance for the construction phase.

By 1972, Westfield had passed the $1 million earnings mark, had a joint venture with Credit Suisse, and approximately 65 per cent of its profit before tax was derived from income-producing properties.

Halfway through its second decade, Westfield’s income was coming from a property portfolio consisting of eight freehold shopping centres, with three on long-term leasehold and two jointly owned. There was also an income stream from a freehold office block, hotel and motel.

By 1977 the company had identified a new source of finance — superannuation funds. Since the loosening of restrictions on permissible avenues of investment for superannuation funds, investment in property had become a notable feature of the real estate scene. The cash flowing into superannuation schemes from rising, wage-indexed salaries had underpinned the Australian property market for the preceding two or three years.

In 1977, Westfield embarked on the construction of the Hurstville complex, a sale–leaseback arrangement with the NSW State Superannuation Board. A year later, Westfield had all the hallmarks of a company over-leveraged.

For 17 years it had grown without interruption. A large part of its business had been financed through borrowings and its liabilities had grown to $125 million. Its assets stood at $153 million and it had $28 million in shareholders’ funds. However, its assets had not been revalued since 1971 and their true value was not reflected in the share price.

In mid 1978, Westfield announced it was considering a reappraisal of the value of its properties. Westfield’s share price soared from a low of $2.75 in January 1978 to a high of $7.50 in November of the same year.

In November 1978, on the official announcement of its intention to form a property trust which would increase shareholders’ dividend income eightfold, the shares surged to $8.30.

In July 1979, Westfield Ltd was delisted and in its place Westfield Holdings Limited and the Westfield Property Trust were listed. The sale of Westfield Limited’s wholly owned properties, a result of the establishment of the trust, constituted what was at the time probably the largest-ever property transaction in Australian history.

While most of the transfer was ‘in-house’, two of the largest properties were sold to the Superannuation Fund Investment Trust (SFIT), generating a capital profit of $80 million. This was distributed to shareholders through the issue of eight units in the trust for each ordinary share.

In its grand finale before the 2 July reconstruction, earnings for Westfield Ltd increased 25.8 per cent to $4.4 million in the year to 30 June 1979. This was the company’s 19th consecutive profit.

Following the restructure, the Westfield Property Trust became the equity provider for the capital-hungry Westfield shopping centres and the value of the two entities, the units and the shares, shot up to $12.

The outcome was extraordinary. Westfield’s leverage was eliminated, it had $25 million in the bank and shareholder wealth had grown exponentially.

Westfield Holdings was concentrating on fee-generating management and development activities. It was manager of the Westfield Property Trust and was also manager and service provider to the centres. While Westfield Holdings offered growth, the Westfield Property Trust, with its minimal borrowings, offered secure and steady returns.

Westfield had ended its second decade as a public company in a position of unprecedented strength.

But there was bad news around the corner. A year after the restructure, the Government changed the rules retrospectively, forcing Westfield to re-achieve the same result using other tactics. It succeeded and, in 1982, a new trust was floated.

GainingfinancialSophistication



Monthly Net Income


$4,500

$2,500



Mortgage

Taxes

Car Payment

Car Insurance


Cable Bill

Gas/Electric


$2,300

$600

$350

$60

$127

$120

$88

$50


Growth Record ($'000s) 1961–1970Income and Expenses 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979

Total Assets 16 33 46 71 95 102 116 125 152 155 147

Total assets 16 33 46 71 95 102 116 125 152 155 147


Mid Year Bonus

Year End Bonus

June $2,000

December $3,000

January



November vacation


Gifts for family

Family vacation

November $450

December $600

December $300

July $880

January

January

January

January


0

50

100

150

200

0

50

100

150

200

19691970

19711972

19731974

19751976

197719781979




Personal Budget


Monthly Net Income


$4,500

$2,500



Mortgage

Taxes

Car Payment

Car Insurance


Cable Bill

Gas/Electric


$2,300

$600

$350

$60

$127

$120

$88

$50



Total Assets 0.51 0.72 0.92 1.07 1.38 1.56 1.74 2.14 2.66 3.42 4.3

Total assets 0.51 0.72 0.92 1.07 1.38 1.56 1.74 2.14 2.66 3.42 4.3


Mid Year Bonus

Year End Bonus

June $2,000

December $3,000

January



November vacation


Gifts for family

Family vacation

November $450

December $600

December $300

July $880

January

January

January

January


0

1.25

2.50

3.75

5.00

0

1.25

2.50

3.75

5.00

19691970

19711972

19731974

19751976

197719781979




Personal Budget


Monthly Net Income


$4,500

$2,500



Mortgage

Taxes

Car Payment

Car Insurance


Cable Bill

Gas/Electric


$2,300

$600

$350

$60

$127

$120

$88

$50



Total Assets 4.77 9.34 12.72 15.31 19.28 20.48 21.35 22.86 27.60 30.62 31.4

Total assets 5 9 13 15 19 20 21 23 28 31 31.4


Mid Year Bonus

Year End Bonus

June $2,000

December $3,000

January



November vacation


Gifts for family

Family vacation

November $450

December $600

December $300

July $880

January

January

January

January


0

10

20

30

40

0

10

20

30

40

19691970

19711972

19731974

19751976

197719781979




Personal Budget


Monthly Net Income


$4,500

$2,500



Mortgage

Taxes

Car Payment

Car Insurance


Cable Bill

Gas/Electric


$2,300

$600

$350

$60

$127

$120

$88

$50



Total Assets 10.14 10.14 12.32 12.32 17.50 24.00 24.00 24.00 34.00 34.00 34.0

Total assets 10 10 12 12 18 24 24 24 34 34 34.0


Mid Year Bonus

Year End Bonus

June $2,000

December $3,000

January



November vacation


Gifts for family

Family vacation

November $450

December $600

December $300

July $880

January

January

January

January


0

10

20

30

40

0

10

20

30

40

19691970

19711972

19731974

19751976

197719781979




Personal Budget

Total Assets ($ millions)

Stockholders’ Funds ($ millions)

Profit After Tax ($ millions)

Issued Capital ($ millions)


$0

$50 000

$100 000

$150 000

$200 000

$250 000

$300 000

$0

$50 000

$100 000

$150 000

$200 000

$250 000

$300 000

19601965

1970

1975

1980

While shareholders who bought into Westfield in 1960 reaped tremendous benefits from their shares in the first decade of the company’s existence, those who bought in the 1970s also stood to gain undreamed-of wealth.

An investment of $1000 in Westfield shares in 1960 would, provided all bonuses and dividends were reinvested in Westfield shares, have been worth $16,850 by 30 June, 1970.

A decade later, in 1980, under the same criteria, this would have grown to $236 350.*

How did such phenomenal growth occur? The principal reason was the company’s consistent

profit increases and its prospects for future growth as the market embraced Westfield’s strategy.

Secondly, dividends of 15 per cent continued to increase every year until 1974 when they hit 20 per cent. They remained at this level until the restructure in 1979 when they dropped to 10 per cent. The following year,

they were back up to 20 per cent. In addition, a number of bonus share issues benefitted the share price. Through the 1970s, shareholders received share bonuses on four separate occasions and, in one instance, a large parcel of units in the new property trust. 1970 — one for five bonus issue 1972 — one for five bonus issue 1973 — one for three bonus issue 1976 — one for four bonus issue 1979 — for each share in Westfield Ltd, shareholders received one share in Westfield Holdings and eight units in the property trust

Lastly, the decade saw share prices rise steadily, but particularly at its end. In 1977, for example, shares had been around $2. By 1980, the same shares (now expressed as eight units plus the shares) were worth around $11.

ADreamDecadeforShareholders

* This calculation assumes the trust units given to shareholders as part of the 1979 restructure were traded for Westfield Holdings shares.

Westfield Shares

Statex 100 Share Index

Consumer Price Index


Above: As part of Her Majesty The Queen’s Silver Jubilee celebrations, HRH The Prince of Wales opened an exhibition of Royal Coaches in the Indooroopilly Shoppingtown, after which they were displayed in other Westfield centres throughout Australia. When Prince Charles bade his farewell, he politely asked Saunders if there was anything he could do for him. ‘Yes,’ replied Saunders (far left). ‘Please send your mother.’


Since the late 1950s Saunders and Lowy had been making regular visits to the United States to learn about shopping centres. Every year, one or both would attend the International Shopping Centre Convention, and they would also use the time to tour individual centres and get a feel for trends, innovations and anything that could be brought back and profitably applied in Australia.

By the 1970s they had become concerned that, with its limited population, Australia could accommodate only a finite number of centres. This concern propelled them to start thinking of expansion into overseas markets.

When the Whitlam Government came into power in 1972, it initiated shifts in overseas investment regulations that would pave the way for Australian business to explore the world. Whitlam changed strict currency regulations, and businesses such as Westfield began looking abroad.

Westfield set its sights on Asia, but when a deal there collapsed, it turned to the United States. By then it was 1976 and numerous theories abounded about how Australians could gain a foothold in the American market. The most popular theory at the time proposed that the business had to have a ‘critical mass’ in the new country to succeed. Lowy and Saunders discounted this. They preferred the ‘toe-in-the-water’ approach. Up to this point in their business lives they had never simply launched themselves into a new territory. Their entries had always been cautious and well planned. With this in mind, they aimed to buy one centre, well

ACautiousexpansion

Making inroads into America

positioned and of manageable size, and then see what they could make of it.

A suitable centre in San Francisco became available but its price tag of US$28 million was too high for Westfield to take on alone. Credit Suisse was not interested and after making overtures to others, Westfield found itself without a financial partner. Reluctantly, it had to let the deal go.

A short while later, the affable Saunders was at Las Vegas airport having just attended a shopping centre convention. In the boarding queue he fell into conversation with a real estate agent and mentioned he was looking for a centre to buy. The agent responded by saying he had just the property Saunders was looking for in Trumbull, Connecticut – it was in some trouble with an anchor tenant, and was not yet officially on the market.

A few days later Lowy flew to the centre. It was exactly what Westfield required to learn the business in the United States. It was in an affluent area, was of a manageable size and had lots of potential.

After taxing and protracted negotiations a deal was struck and Westfield bought Trumbull Shopping Park for US$21 million. The purchase was financed by taking over the existing first mortgage loan term facility in the United States and increasing it to US$15 million, and providing the balance out of Westfield’s own resources.

Within three years of making this purchase, Westfield would add another three centres to its US portfolio.


Right and below: Trumbull Shopping Park, 1959.


Once Westfield has acquired a new shopping centre, no time is wasted in improving it on every possible level. Although the 15-year-old Trumbull Shopping Park in Connecticut was well established, fully let and operating profitably, Westfield could see room for improvement. The centre was surrounded with a middle- and upper-class population in a county said to have the highest per capita income in the United States at the time. With parking for 5000 cars, it had sufficient land for substantial expansion.

Trumbull was a peculiar amalgam of strip centre and regional mall.

Anchored by a discount store, Korvettes, and a locally based department store, Reads, space in between the two was essentially a retail hotchpotch of 60 shops.

David Lowy began his formal Westfield career at Trumbull. Having just completed his university degree he went, without so much as a breather, straight into the American business.

Soon after the purchase, a Westfield team was dispatched from Australia to start planning its makeover and Frank Lowy himself spent about six months working with the team. Westfield aimed to transform Trumbull through several phases of renovations, expansions and aesthetic upgrades from its existing ‘identity crisis’ into a vibrant regional shopping destination.

The Westfield team was used to the Australian commercial environment where space was at a premium. In Australia, shopping centres had mostly grown up close to railway networks in densely populated suburbs

where land was expensive. To squeeze the most out of a centre, the land had to be used intensively, efficiently and cleverly. In the United States, cities tended to shoot up around major freeways. Shopping centres were built at major intersections of these freeways, where there was an abundance of cheap, empty land. Typically, centres would have the luxury of 80 to 100 acres, with carparks sprawling all around them.

In Australia at the time, Westfield was building multistorey centres with underground and rooftop parking. It was used to exploiting vacant space and turning it to commercial use. It was also used to having cohesive, integrated centres.

To elevate the Trumbull centre to regional mall status, a multitude of regulations, review and approval processes had to be navigated by the Westfield development team. Given Trumbull’s location in a conservative state and locality highly resistant to change, a methodical, phased approach to change was employed.

Between 1977 and 1992, what had formerly been a centre with an identity crisis — featuring a disjointed mishmash of 60 small merchants anchored by a local department store and a failing discount store — was transformed into a heavyweight shopping centre destination with four powerhouse anchors and 200 popular specialty retailers.

Westfield’s US$21 million ‘toe in the water’ in 1977 had, by the end of 2009, become an asset valued at $233 million with opportunity for further growth.

nursinganewAssettoRobustGoodhealth

Room for improvement


Right: Trumbull by night, 1967.

Below: The land surrounding Trumbull in 1977, with its space for 5000 cars, was ripe for expansion.


Popular belief has it that the modern shopping centre is a revolutionary American architectural concept which first took root in the postwar suburbia of the late 1940s.

In reality, the concept is centuries old. It has its origins in the medieval marketplaces and bazaars of Persia, Egypt and the Far East. As Alfred Taubman explained in an article in the Real Estate Finance Journal (Summer, 1987), ‘Those roots start to become clear when one considers an account written in 1784 by a European traveller, describing the bazaars of eighteenth century Istanbul as “superb buildings filled with beautiful covered passages. They are all well maintained. Each business has its own hall, where the merchandise is presented … Visitors come for entertainment as well as business.”’

Such marketplaces evolved into ‘arcades’ in Europe which, by the late 1700s, had become sophisticated and refined venues attracting the fashionable shoppers of the day. According to Taubman, the Galeries de Bois of the Palais Royal, built in 1786, was perhaps the earliest pure example of this. Consider this 1849 commentary on Paris street life:

So that the inner city could compete with the boulevards, speculators hit upon the arcades, which immediately found a favourable response. It was not enough to save the pedestrian from the distress and anxiety of the street; one had to attract him positively to the arcade so that once he entered he would feel himself caught by its magic and forget everything else. It all depended on the ability to build an arcade as bright as an open space … warm in winter, and cool in summer, always dry and never dirty or dusty.

The arcade arrived in the United States in the 1820s in the shape of the Philadelphia Arcade and others soon followed in Providence, New York and Cleveland.

Meanwhile in Europe, arcades were becoming increasingly sophisticated and reached their grandest scale in examples such as the Galleria Vittorio Emanuele II in Milan, which displayed striking similarities to modern malls.

In the 1950s, shopping centre architect Victor Gruen, a Viennese émigré, cited the glass-roofed galleries of Milan and Naples as the inspiration for his new American centres which had indoor public walking areas, and were airconditioned in summer and heated in winter.

In the first half of the twentieth century, established downtown American department stores dominated city retailing. Chainstores and other competitors were kept at bay, but as strong opportunities began appearing in the suburbs, they found their niche there, occupying locations known as ‘hot spots’ that were three to nine kilometres from downtown. ‘These streetfront properties, anchored by chain, variety or specialty stores, were serviced primarily by foot traffic, buses, streetcars and an evolving middle-class American phenomenon — the automobile – which new developments began to accommodate in adjacent parking lots, giving shoppers an additional incentive to come,’ wrote Taubman.

The automobile hastened the decline of the downtown retail institutions. In 1900, there were only 8000 registered cars in the United States. By 1920, there were 20 million but because of the narrow streets which had been planned for horses and carts, they could not be comfortably accommodated in the cities. Downtown areas became so crowded and congested that people found it simpler and more pleasant to shop where they lived — in the suburbs.

Suburban migration after the Second World War was encouraged by government programs offering affordable financing to new-home buyers and by tremendous expenditure on highway construction to serve suburban populations. Eventually, the downtown princes of retailing were forced to seek business in the suburbs too.

TheevolutionoftheModernAmericanMall


Below: Interior view of Universal Mall, Michigan, Westfield’s second US investment.

Keeping the Core Business Strong in a Turbulent Decade

1980–1989 RaisingtheStakes


Prior to the 1980s, Westfield’s path had been fairly predictable. After shedding residential development, it had largely stuck to its core shopping centre business.

But in the 1980s the mood of the country was changing and diversification was the buzzword. Companies that ‘stuck to their knitting’ were considered unfashionable. Daring companies, that showed dash and verve, were the darlings of the market.

Westfield’s core business was solid and set for growth. The company had just been through a major restructure and had streamlined operations. It had gathered enough experience and expertise to be confident that if it continued its ‘intense management’, the shopping centres would be secure and profits would continue to grow.

This knowledge gave Westfield the freedom to begin thinking about diversification and in 1981 Westfield took its first small step. It decided to enter natural resources, in particular coal mining, and joined a consortium which won the tender to prospect at Winchester South in Queensland. With its 25 per cent interest in the consortium, Westfield had high hopes.

At the same time as the mining venture, it entered a second consortium to service the heavy construction and civil engineering industry.

As the core business continued its peak performance in Australia and continued to grow and expand in the United States, Westfield took a further step and in 1983 formed a joint venture with Bridge Oil to take up an interest in the Jackson–Moonie gas pipeline project.

Things were going well and Westfield even found itself with a windfall worth $10 million through a restructuring of the construction consortium.

Then, in 1984, Saunders dropped a bombshell. He wanted to sell his shares in Westfield to Frank Lowy. After almost 30 years of partnership, he wanted a change. He wished to sell his shares immediately but remain involved with the company.

At the time, Westfield had a market capitalisation of $100 million and its shares were trading below $5.50.

Lowy bought out Saunders for $8 a share and Saunders stayed on, but a profound change had occurred in the chemistry between the two men. Lowy became chairman and Saunders deputy chairman.

The company was flush with funds and the following year, for Westfield’s 25th anniversary, a preference share issue was made to shareholders. It was on a one-for-one basis and carried a profit element of $3 per share.

Core business was still going strong when Westfield carved itself a major role in the Coles Myer takeover, from which it emerged with 5.5 per cent stake in the new company. This it soon expanded to 7 per cent.

Deals were being done on a huge scale, markets were bullish and cash was easily available.

Cashboxes were all the rage and Westfield decided it should have one too. It could not be seen that this diversification would end up in financial calamity.

The cashbox, called Westfield Capital Corporation, was launched with much fanfare in mid 1986 holding the Coles Myer shares and 12 per cent of Bridge.

Months later it bought 20 per cent of ACI and started looking for the prized stocks of the decade — media.

While the cashbox was having its moment of glory, Westfield’s move into mining and energy was not meeting expectations and the company signalled that its coal prospecting be put on hold.

Meanwhile, the search for media led Westfield Capital Corporation to Northern Star, through which almost $1 billion worth of media assets were bought in early 1987, including a national television network.

Before the year was out, the country was hit by the devastating stockmarket crash of October 1987. The mood changed. Everyone was picking up the pieces.

By 1989 Northern Star was virtually given away and Westfield Capital Corporation wound down with shareholders taking big losses.

Ironically, Westfield ended the decade back almost exclusively to its core business which, through the calm and rough times alike, had never missed a beat.

fromDiversificationtoConsolidation

19 8 0 –19 8 9 Raising the Stakes 75

Above: The board that saw Westfield into the 1980s: (L to R) Reg Stevens (secretary), David Lowy, Frank Lowy, Stephen Johns, John Saunders, Don Stephens and Walter Pisterman.


Just as Westfield constantly remodelled its shopping centres to accommodate new trends and improve its performance, so in 1979 it had remodelled its own capital structure to meet changing trends in the capital market and improve its fiscal position.

The restructure involved the creation of a property trust into which was sold six of Westfield’s shopping centres, and was listed as Westfield Property Trust.

About a year after the Trust was listed, the Federal Government decided to change the rules relating to trusts, making them retrospective. Westfield sought to reorganise its structure and in April 1982 it wound down the Westfield Property Trust, listing the new Westfield Trust in June of the same year.

By the end of the 1980s, the Westfield Trust, which had struggled early, was Australia’s leading shopping centre trust with investments in 15 Westfield Shoppingtowns across Australia. It had withstood the economic fluctuations and pressures of the decade to emerge with more than $1.45 billion in assets and virtually no debt.

This was a considerable achievement, bearing in mind it began life in 1982 with assets under $150 million. Managing the trust had been the first major job for both Peter Lowy and Steven Lowy when they returned from working in investment banking in the United States in 1983 and 1988 respectively.

By 1990, well over 104 million shoppers were passing through the doors of Westfield shopping centres every year and the phrase ‘Australia shops at Westfield’ had never been more apt.

Through acquisitions, a program of constant refurbishment and aggressive promotions, the trust had been able to almost double distributions to reach

19.62 cents per unit. Its asset backing per unit had more than doubled to $2.21.

By this time, it was obvious there was a limited supply of new sites for shopping centres. It was becoming increasingly difficult to locate suitably zoned land close to established or expanding population centres. As a result, existing regional centres were highly sought after.

Although less than 20 per cent of national retail sales were conducted in regional shopping centres, there was a belief that this could only increase significantly to reach levels achieved in the United States where such centres were well established. More than 50 per cent of Americans shopped at regional centres. By all measures, regional shopping in Australia was a growing phenomenon.

Then, the Australian population was projected to reach 20 million by 2000. The majority of this growth was expected to occur in the capital cities and, in turn, boost consumer demand and total spending capacity of the trade areas surrounding existing shopping centres.

Shopping centres were also increasingly becoming the focal points of their local communities. New facilities such as food courts and cinema complexes increased their drawing power, widened the potential market beyond shopping and extended the potential trading hours beyond normal shopping hours.

All these factors improved the rental income and capital growth which was then being sheeted home to the unitholders.

In 1990, a year when the economy and national retail sales showed little or no real growth, sales in the trust’s Shoppingtowns rose 11 per cent during the year.

TheWestfieldTrustComesofAge

19 8 0 –19 8 9Raising the Stakes 77

Butwasitasecureinvestment?By the end of the 1980s, the media, stockbrokers and advisers were recommending an investment in the trust.

As an investment it offered security of capital and strong potential for attractive returns. The security was based on the fact that every household has a need for a range of commodities which must be regularly purchased regardless of economic conditions.

In addition, well-managed shopping centres experienced high occupancy levels and stable rental income flows. The rental income was derived from two sources.

First, there was the base rental, which was initially fixed for the term of the lease but could increase each year on either CPI or Fixed Increment basis.

Second, there was the turnover rental, which was charged in addition to base rent when the retailer’s turnover exceeded a specified level.

By 1990 about 95 per cent of income from Westfield Shoppingtowns was derived from base rental, thereby minimising the effect of short-term fluctuations in retail sales on the performance of the shopping centres as an investment.

Base rentals from specialty retailers were generally linked to the CPI, which allowed rental income to rise with inflation. Such leases ran from three to five years. Leases for major retailers could run for periods of up to 30 years.

The best known and best performing retailers could all be found in Westfield Shoppingtowns.

More than 16 700 private and institutional investors participated in the trust, including the AMP Society, National Mutual Life, GIO, ANZ Bank, National Australia Bank, Westpac, Mercantile Mutual and the Queensland Treasury Corporation, which invested on behalf of millions of policy-holders and members.


When General Motors-Holden (GMH) closed down its Sydney manufacturing plant in the early 1980s, New South Wales lost 1000 jobs and Westfield made a bid for the vacant site.

A short while later, when a second large factory, WD & HO Wills, signalled it was planning to close its Sydney cigarette manufacturing plant, the NSW Government, reluctant to lose more jobs, made a move to save them.

It brought Wills and Westfield together and, after a series of negotiations, both companies agreed to develop the GMH site, which the NSW Government then enlarged by adding a piece of Crown land.

Howls of protest followed. There were complaints about the commercial use of Crown land, complaints about the speed of the rezoning of the land to allow the developments, and allegations of ‘sweetheart’ deals between the NSW Government and its business ‘mates’.

There was also powerful opposition from three big commercial parties who had retail outlets of substantial size in the area and believed their trade would be adversely affected.

In July 1982, these parties mounted a challenge to the rezoning in the NSW Land and Environment Court. The future of the development looked distinctly shaky until a remarkable thing happened.

In the second week of the hearing, the sheriff entered the court with a note for the judge. The judge read it and called an immediate halt to the proceedings.

The NSW Government had intervened. It had passed an Act of Parliament to end the proceedings and preclude any appeal. Even louder protests followed, with public debate about the right of the NSW Government to overrule legal process.

However, the anger eventually subsided and the Westfield Eastgardens Shoppingtown went up on its section of the site. The end result was that the General Motors-Holden site held a shopping centre and a factory, jobs were saved and WD & HO Wills’ plant remained in New South Wales.

TheBattleforeastgardens

The Eastgardens redevelopment in Sydney was looking shaky in July 1982 as the rezoning was challenged in the NSW Land and Environment Court.

Right: Eastgardens’ arrival on the New South Wales shopping centre scene was fraught with high drama.


In the early 1980s, competition and shrinking margins put several large retailers under pressure and they began to eye each other as potential takeover targets.

It was against this background that Grace Bros found itself increasingly vulnerable.

Concerned about the welfare and future of one of its important retailers, and wanting to do its best to ensure Grace Bros didn’t fall into the hands of non-retailers, Westfield decided to enter the corporate play. It accumulated just over 5 per cent of Grace Bros and waited quietly.

By early 1983, only Myer and the Bond Corporation were left to fight it out, each of them holding 45 per cent and desperate for Westfield’s 5.3 per cent.

Although Bond offered more money, Westfield sold to Myer.

Lowy said at the time his focus was not on the money but on the long-term interests of the industry. He wasn’t interested in a quick profit.

As it turned out, Westfield did make handsome gains on the deal, not only in terms of cash, but in terms of strategy. It had been a pivotal player in a major corporate battle and had learned a few useful tactics.

With Myer struggling to digest its huge purchase, Westfield proposed it form a property trust with Myer and that this trust take on the other properties.

The WestMyer Trust was thus established with two of the Myer properties. The establishment of the trust was an important step for Westfield because it brought it closer to Myer. Two years later, this closeness would pay dividends when Myer became the target of a corporate takeover which captured the nation’s attention.

Westfield:A‘WhiteKnight’


‘Cliffy’putsWestfieldonthemap

Keen to build a national profile for the company, Westfield decided in 1983 to organize an ultra-marathon run between its shopping centres in Parramatta in Sydney, and Doncaster in Melbourne, a distance of 1000 kilometres.

The event was billed as a match-race between Australia’s two premier ultra-distance runners, Irish-born Tony Rafferty (who would run around his garage for hours in training because he hated the rain) and New South Welshman George Perdon.

But it was an eccentric 61-year-old potato and dairy farmer who lived with his mother in the Otway Ranges, 120 kilometres west of Melbourne, who stole the race. Having trained in gum boots, legend has it that a mistake by his crew had him up and running for four hours while he was meant to be sleeping, thus stealing a lead that the more fancied runners could not reign in. ‘Cliffy’ became a national celebrity, and his victory ensured the Westfield Ultra-Marathon enormous publicity.

Westfield conducted the race until 1991, after which it was shelved because of rising costs and waning media interest. However, Cliff Young’s improbable success in 1983 ensured the race will forever have a place in Australia’s popular history.

Just as it had been concerned about the future of Grace Bros, Westfield became concerned about the future of Myer. The Myer group’s stores, which included Grace Bros and Target, occupied some 15 big locations in Westfield’s 17 centres. They were retailers Westfield did not want to see threatened.

Lowy bought a 10 per cent stake in Myer and, as before, waited.

Given the presence of so many hostile parties wanting shares, Myer welcomed Westfield as an ally. The press billed Westfield as Myer’s ‘white knight’.

During a hectic three-week period, a quarter of Myer’s stock changed hands and Coles built up a stake of over 18 per cent. Westfield raised its own stake to 12 per cent.

Lowy was invited to join the Myer board. At the time he regarded this appointment as the high point of his working life.

By July, the speculation was over and Coles announced a $1 billion takeover bid for Myer. Again, Lowy held a remarkable position and wielded considerable influence.

Westfield’s interest in a merged Coles Myer was, of course, high. Such a merger would create a retailing giant, employing 130 000 people in more than 1350 stores that included household names such as Target, Grace Bros, Fossey’s, Kmart, Coles Variety, Coles Supermarkets and Liquorland.

When the takeover became a reality, Westfield obtained a 5.5 per cent shareholding in the newly created giant and received almost $36 million in cash, and Lowy was invited to take a board seat in the new entity, Coles Myer Ltd. In the retailing industry, Westfield had reached new heights.


Staff at Westfield saw John Saunders and Frank Lowy as a formidable united force. They seemed inseparable, always consulting each other, keeping each other up to speed and publicly supporting one another’s decisions.

The men had been partners since the mid 1950s and had, in a sense, grown up in business together. Although Saunders was eight years older and had more experience when they first met, after a few years that difference disappeared and together they forged ahead in the shopping centre industry.

While they could cover for each other, and often did so, they branched off in different directions. Saunders, an instinctive, natural entrepreneur, had a nose for opportunity. With flair and imagination he could boldly

create something where there was nothing before. He was broad-brush, imaginative and, in some ways, unafraid of risk.

In the beginning of the partnership Lowy would make sure the fundamentals were in place. He had a firm grip on commercial realities and would ensure the company’s projects were financed so as to be secure and profitable. Despite these differences in style, their combined flair and pragmatism made their visions a profitable reality.

But, as they grew in business, this changed. Saunders continued to function largely in the shopping centre sphere while Lowy went beyond it. He entered the larger world of commerce.

While Saunders’s talent lay in the imaginative use of the physical buildings, Lowy had a particular flair for creating

Separation

After thirty years of partnership


financial structures. This began to put some distance between them and the gap widened when Westfield expanded into the US in 1977.

Saunders made the initial contact that landed them their first American shopping centre but then Lowy took over, forged into the US market and established Westfield as a major force in the American shopping centre industry.

By the early 1980s, things had changed irrevocably for the Westfield pair. Their personal development had moved them in different directions. Two of Lowy’s sons were in the business and a third was soon to enter. Saunders had no one following him and was becoming physically unwell. In 1984 he decided to cash in and wind down.

Following negotiations, Lowy bought Saunders out at $8 a share. At the time the shares were trading

under $5.50 and the purchase cost for Lowy was about $22 million.

As part of his departure package, Saunders acquired three major assets: land Westfield had owned in William Street and Crown Street, the yet-to-be-constructed Eastgardens shopping centre, and the Shore Inn.

Although Saunders stayed on the board and was deputy chairman, he retired from active duties in 1987.

Subsequently he established the Terrace Tower Group, with headquarters just across the road from Westfield.

The Terrace Tower Group thrived under his ownership but over the next few years Saunders became increasingly ill. In December 1997, he died from heart failure.

Below: By the time Saunders relinquished his active management role in Westfield in 1987, he had stamped his unique style on the industry through his imaginative approach to the siting, development and marketing of shopping centres.

When he stepped away completely from the company in 1990, he left a huge legacy. His flair, his creativity, dash and ‘can do’ attitude was deeply woven into the corporate identity of Westfield.


Westfield’s foray into the United States market was cautious and conservative. It didn’t rush in full of optimism and bravado. Rather it adopted a toe-in-the-water approach. When it felt comfortable and safe, it waded in deeper.

After buying its first shopping centre in 1977, it spent three years on redevelopment and getting settled.

In 1980 it bought three more centres and used the following five years to get them up to standard. It was a slow and steady process. There was no hurry.

In 1985 it bought another centre and then, in 1986, made headlines by beating several major bidders for a prestigious parcel of three centres owned by Macy’s. This gave Westfield a portfolio of eight US properties.

By the time of its 10th anniversary in the United States in 1987, Westfield had established its headquarters in West Los Angeles, and was a self-contained operational unit with its own development, design, construction, leasing and management divisions.

From an initial investment of US$6 million a decade earlier, it had grown into a powerful enterprise. Later that year, it decided to sell its smallest shopping centre, Universal Mall in Warren, Michigan, because it no longer fitted into the group’s operating criterion with respect to size and location.

With ongoing refurbishments and extensions throughout the portfolio, Westfield closed its first decade of US operations on a strong note and primed for further growth.

By 1988, the seven US centres were worth $1.1 billion and it was decided to separate these US assets from Westfield’s Australian operations and float them in a new company. This would allow them to stand alone and would lift the group’s profile outside of Australia.

The float of Westfield International went ahead but struggled for acceptance. In 1989, the Lowy family privatised the company and the new entity became known as Westfield International Group Ltd.

WadingintotheunitedStatesMarket

Right: Richard Green explains Westfield’s plans to Los Angeles residents.


Below: Saunders and Lowy at the new Westside Pavilion, Los Angeles.


When David and Frank Lowy first saw the Westside Pavilion site in Los Angeles in 1980, they took two seconds to visualise its potential and told Richard Green to go ahead and see if the redevelopment they envisaged could be done.

Stunned by the speed of their decision, Green went ahead, got the approvals and then watched as Westfield produced the necessary $8 million to pay for the land.

The plan was to knock down most of the existing centre and put up a state-of-the-art new one. The hard

redevelopment work began immediately, but the biggest coup was convincing Nordstrom to move not only into Los Angeles, but into a uniquely designed urban site with rooftop parking.

The centre was opened to acclaim in 1985. It was a starstudded affair, with celebrities such as the late Walter Matthau and Stevie Wonder attending.

TheWinsandLosses

The Westside Pavilion site

As soon as they saw the Westside Pavilion site in Los Angeles in 1980, David and Frank Lowy made an almost instant decision to purchase it.

Right: The Westfield Pavilion, Los Angeles.


Westfield earnestly wanted Nordstrom in Westside Pavilion and, to try and win it over, spent a good $50 000 to $60 000 on a sophisticated presentation. Richard Green and his well-rehearsed team flew up to Nordstrom headquarters in Seattle to make their pitch. All went according to plan until they finished.

The audience was unmoved. Jim Nordstrom, who is a keen golfer, gave them a blank look and said, ‘That was a great presentation but your site is outside the leather.’*

Green refused to concede, and drove the head of Nordstrom in southern California all around the site to convince her how good it was. Says Green: ‘At one point I drove into a sporting goods store that was up the

street from our site. I introduced myself to the manager and asked him to tell us about the location. It was a top location, he said. People came out of the hills to shop there and it was his company’s best-performing store.’

The gamble paid off and the Nordstrom employee’s report to headquarters was favourable.

A short while later, Bruce Nordstrom visited Los Angeles and stayed overnight at the Century Plaza Hotel. A keen runner, early the next morning he went for a jog from his hotel to the Westfield site. It was clear the site was in the vicinity of where Nordstrom wanted to be – Westfield was ‘inside the leather’. It had taken a casual jog to clinch what thousands of dollars couldn’t do.

you’reoutsidetheLeather–orAreyou?

*The golfing term ‘inside the leather’ means the ball is so close it is a ‘gimme’ — you can assume one putt will sink it. The distance is measured by the length of the leather handle of a golf club.

Nordstrom and the Westside Pavilion


By 1986, Westfield was ready to acquire more malls in the US but none were available. That was until a big Macy’s parcel came onto the market.

Westfield set its sights on three fully-owned centres, but there was stiff competition and bidding was intense. It seemed Westfield had no chance, except it had something up its sleeve.

Frank and David Lowy had visited the three centres and saw first-hand how they could maximise the retail space. At Garden State Plaza in New Jersey, for example, they could convert the abandoned truck tunnels under the centre into retail space by lowering the floors. Extra retail space translated into extra income, which meant they could make a higher bid for the property.

For the bid, Dan Neidich, of Goldman Sachs, represented Macy’s, and he preferred to secure an American buyer. But Westfield’s bid of US$364 million was the highest. It was the largest real estate transaction in the history of the mall business and Neidich was nervous.

‘How do I know you have the money?’ he asked. Lowy suggested Neidich be taken to the National Australia Bank’s office in New York.

Lowy called the bank himself and arranged for it to verify Westfield’s credentials. Richard Green recalls an

unusual meeting at which the bank basically looked Neidich in the eye and said, ‘We want you to know that we consider Westfield and the Lowys as one of our top five customers in this bank. We back them 100 per cent on any activities they have here in the United States.’ Neidich was impressed but further credentials were still required so Jim Wolfensohn, who was advising Macy’s on the purchase, stepped in. His influence provided the final seal of approval.

When final negotiations commenced, Arthur Schramm recalls that the American group had 60 people on its side. Westfield had five — Frank and David Lowy, Schramm, Green, and Barry Mills, a lawyer.

When Herb Hellman, Macy’s general counsel, asked Frank, ‘Where’s your team?’ he responded, ‘Here’s my team.’

In the end, Westfield successfully acquired the three properties — Garden State Plaza, South Shore and Bay Fair. It was a watershed moment for the company in the United States.

Although Westfield only had seven US centres at the time, the Macy’s transaction put it on the map. ‘It changed the whole complexion of the company,’ says Schramm. ‘It was pure Frank Lowy vision.’

‘howDoIKnowyouhavetheMoney?’

Bidding for three Macy’s centres

Left: Smiles after the Macy’s deal: (L to R, standing) David Lowy, Richard Green, Arthur Schramm, Dan Neidich (Goldman Sachs) Peter Gruneberger (lawyer), Herbert Hellman (general counsel, Macy’s), Ira Millstein (lawyer), Jim Wolfensohn, (L to R, seated) Frank Lowy and Ed Finkelstein (chairman, Macy’s).

Right: An aerial shot of Garden State Plaza.


Despite the heavy losses it suffered during the stockmarket crash of October 1987, by the time Australia’s Bicentenary celebrations began in 1988, Westfield was on its feet and fully participating in the festivities.

It was a happy time for the company, which was involved in celebrations at local, state and federal levels.

One of the highlights of the year was the gift of a ceremonial coach from the Australian people to Her Majesty Queen Elizabeth II. This coach, the first to be built anywhere in the world since 1910, was sponsored by Westfield and the ANZ Banking Group.

It was exhibited at Westfield Shoppingtowns nationally so people across the country could see it.

Australia’sBicentennialyear

Left and below: Frank, Shirley, David and Margo Lowy greet Her Majesty Queen Elizabeth II and HRH The Duke of Edinburgh before presenting the Australian people’s gift of a ceremonial coach to the royal couple.

Opposite: The redevelopment of the centre in Hurstville, Sydney (1988–1990) more than doubled its size.

A Royal engagement


In the 1980s, Westfield’s Australian portfolio grew from 15 to 21 shopping centres and 16 of these centres benefited from redevelopments.

Redevelopments of North Rocks in Sydney, Indooroopilly in Brisbane and Doncaster in Melbourne were completed in 1981, while the Marion and Airport West projects were completed in 1982, the year in which retail sales in Westfield’s Australian shopping centres exceeded $1 billion for the first time.

Strathpine opened in Brisbane in 1983 and that same year Westfield entered into a joint venture with Myer Emporium Limited to acquire and redevelop Southland in Melbourne and Tea Tree Plaza in Adelaide.

During the mid 1980s a number of projects were under construction and in 1986 Westfield purchased 50 per cent

of Belconnen in the ACT and took over management of that centre.

Eastgardens and Chatswood, two major new Sydney centres, opened in 1987 and that same year the redevelopments of Figtree in Wollongong and Southland in Melbourne were completed, the latter resulting in the centre doubling in size.

The new Warrawong centre in Wollongong opened in 1988 and the following year redevelopment projects were completed at Parramatta in Sydney, Marion in Adelaide, Belconnen in the ACT and Strathpine in Brisbane.

In 1990, redevelopments were completed at Indooroopilly and Toombul in Brisbane, and Hurstville in Sydney. Westfield also entered into a joint venture with National Mutual that included redeveloping Miranda in Sydney.

ADecadeofRedevelopment

From strength to strength


Top right: Westfield Capital Corporation after the sale of Bridge Oil.

Below right: Northern Star’s media assets in early 1987. All non-television assets would be sold as it formed a national network.

By the second half of the 1980s Westfield was enjoying a honeymoon period after several successful takeovers and strategic sharemarket manoeuvres.

The economy was buoyant — there was a worldwide bull run — and opportunities were ripe for the picking.

Westfield wanted to enter the fray again. To do this, it decided to separate its traditional shopping centre business from its entrepreneurial investment activity by setting up a cashbox.

The cashbox was called Westfield Capital Corporation Limited (WCC).

As an active and enterprising participant in the stockmarket and other investment mediums, WCC would look for opportunities where it could add value and have an active influence.

WCC began its life on a high note. With $150 million worth of Coles Myer shares, $21.6 million worth of Bridge Oil shares and about $290 million in cash, it ranked among the top 75 publicly traded companies in Australia.

Its first purchase was a 20 per cent stake in packaging and manufacturing company ACI. Then it moved towards the most fashionable stocks of the day, media, buying into a regional media company called Northern Star a couple of weeks ahead of a Federal Government announcement foreshadowing a change in the country’s media laws.

Spurred on by this timely purchase, WCC paid $842 million for two Channel Ten stations and other bits and pieces of media property from Rupert Murdoch’s News Limited.

Although the price was criticised for being too high, things were still going well for WCC, which had increased its holding in Northern Star to 45 per cent and sold its Bridge shares for $43 million.

But following the stockmarket crash of 1987, its shares quickly plummeted and, in 1989, after three years as a publicly listed company, it was wound down, crushed by a $303 million loss. Shareholders were left with very little and Westfield had taken a highly public bruising. Characteristically, this only strengthened its resolve to make its core business bigger, better and stronger.

Assuming responsibility for the failure, Lowy told the press, ‘Just because we burnt our fingers once in 30 years does not mean we have stopped looking for opportunities.’

A combination of Northern Star and the stockmarket crash of 1987 had brought WCC undone.

WestfieldCapitalCorporation

The rise and fall of Westfield’s cashbox

Not everything Westfield touches turns to gold. In the latter half of the 1980s there were three ventures that went awry.

WhenItJustDoesn’tWork

Three misadventures

Frank Lowy: ‘Do I regret going into television? This question needs no answer. What went wrong? Have you got a full page?’ The Australian, 20 August 1990



When it came to Westfield Capital Corporation’s attention in 1986, Northern Star was a small media company based in northern New South Wales with a number of provincial newspapers, and some radio and television stations.

National media laws were about to change, banning cross-ownership between print and electronic media, and the whole industry was on the brink of fundamental restructuring.

To WCC, Northern Star could flourish in the new environment.

In September 1986, WCC bought an 18 per cent stake in the company for $3.75 million. A couple of months later it lifted its stake to 20 per cent and Frank Lowy and David Gonski joined the board as WCC’s representatives.

The industry was growing increasingly volatile and by February 1987, WCC owned 45 per cent of Northern Star which had bought $842 million worth of media assets from News Limited.

This included two major television stations, newspapers, radio stations and a record company.

Northern Star was now in the big league and WCC wanted it to become number one, so it bought another six major television stations and formed Network Ten Australia.

In his first annual report as chairman of Northern Star Holdings, Lowy said the company was the largest television broadcaster in Australia.

It would sell all its non-television assets and concentrate exclusively on its core business — network television and servicing its essential elements.

As it turned out, Network Ten was dogged by problems. Apart from the rare highlight of its Seoul Olympics coverage in 1988, it faced daily difficulties on every level. It couldn’t find good management, ratings were wobbly and programs were in short supply.

Determined to overcome these problems, Lowy travelled the world, but could not find anyone capable of creating the right balance and steering the network to a premier position. Lowy assumed management control.

To create a solid, sustainable program base, Network Ten stepped up production of local programs and Lowy travelled to California, where he established long-term relationships with major producers and distributors of product.

In the final analysis, Network Ten simply couldn’t generate enough revenue to fund these costly ongoing contracts.

Lowy’s greatest fear was that if Northern Star collapsed, it would take WCC with it and perhaps even pull down Westfield Holdings.

WCC had a healthy package of Coles Myer shares valued at $200 million which could, in an emergency, be used to salvage the situation.

The situation was close to critical when a buyer for part of the network was found in a private television production company called Broadcom. Broadcom had expertise but not much cash, so WCC injected the $200 million from the Coles Myer shares into Northern Star and then lent Broadcom $20 million for it to buy 20 per cent of three of the Network Ten stations and assume control of the national network.

WCC advanced a further $5 million to enable Curran Capital Television to buy the three other stations.

When the deal was finally sealed in late 1989, it represented a loss of about $450 million to the shareholders of Northern Star and Westfield Capital Corporation.

The $1 billion foray into network television personally cost the Lowy family about $100 million and much more in damage to its reputation. Later, Lowy said that owning the network was like trying to hold a fish: ‘The tighter we gripped it, the more it slipped out of our hands.’

northernStar


Like Northern Star and WCC before it, the floating of Westfield International Inc. in 1988 made good financial sense at the time.

At the time, Westfield Holdings was operating on two continents. It seemed prudent to split the company in two, so that the Australian and US properties could stand alone without encumbering each other’s performance.

The reasoning was that Westfield International, which would own the US assets, would lift the group’s profile outside of Australia by being an American company. The move would also allow shareholders a greater choice of investment.

The new company would have seven US shopping centres worth $1.1 billion.

Through this division, Westfield Holdings would transfer a large part of its debt to the new company and be able to refinance itself with low interest rates, reducing the drain on its bottom line.

It seemed like a win-win situation. But economic times were tough in the United States

and although Westfield International posted a maiden profit of more than $6 million in its first six months, leading to headlines such as ‘Westfield Does Better in the US Than at Home’, it never really fired as a public company. The stockmarket was not impressed and the shares languished.

The Lowy family and associates, which held 51 per cent of the new company, came to the conclusion that it was not performing as expected and decided to privatise it.

The privatisation would give shareholders the opportunity to realise their investment at a substantial premium to the market.

The family offered $4.23 a share compared to a market price of $2.95. Some shareholders were suspicious and criticised the offer. Nevertheless, the privatisation went ahead and, for the next couple of years, the Lowy family battened down the hatches and cut costs to ride out the turbulent early 1990s.

WestfieldInternational

Below: Network Ten’s Good Morning Australia’s Kerri-Anne Kennerley with celebrity guest ‘Sir Les Patterson’.

At bottom: A dramatic scene from the Network Ten top-rating mini-series, Vietnam.

Capitalising on Hard-Earned Gains and Becoming a Global Player

1990–2000 BuildingonStrength


Despite a sluggish start, the 1990s became the period of greatest growth in Westfield’s history. The company bloomed and by the close of the decade had grown significantly in Australia, had become a real force in the United States and New Zealand, and had made an impressive debut in the United Kingdom.

Australia’s recession of the early 1990s had everyone except the shopping centre industry on the back foot. The three big industry players — AMP, Lend Lease and Westfield — continued to spend up big on expansions and upgradings, leading to newspaper headlines such as ‘Recession Proof Shopping’. Westfield’s view was that even if there was moderate growth in retail sales, because of their attractiveness and competitiveness, malls would take the greater proportion of this growth.

By June 1991, the share price had surged to a four-year high. Westfield was on the path to recovery. Lowy was publicly praised for his ‘noble’ exit from television and analysts declared Westfield was ‘back on the shopping list’.

Later that year, the board gained new expertise when Professor Fred Hilmer, Dean of the Australian Graduate School of Management, took the seat left vacant by John Saunders.

There was also a major change in the share register when Bankers Trust raised its stake in Westfield Holdings to 10.4 per cent, a stake it would subsequently increase.

That same year, Westfield Trust took over the mantle as the largest listed property trust, with a market capitalisation of $1.3 billion.

The following two years were even better for Westfield, generating headlines such as ‘Westfield Again Beats the Recession Blues’ and ‘Experts Give Westfield the Thumbs Up’.

Lowy told the press that the company had been through a number of downturns or recessions since 1960 and that after each one Westfield emerged stronger. ‘This shakeout in the property market — from time to time always plays into our hands,’ he said.

WestfieldBlooms

DutchpartnershipThe company was constantly in the press and gained particular prominence with a new partnership with Rodamco NV, Europe’s largest property investment fund.

Rodamco had been interested in buying a property portfolio in Australia, had done its homework and had approached Westfield. This was a strong vote of confidence in Westfield which, by all measures, had recovered from its problems of the 1980s.

This partnership clearly had the potential to develop further into other parts of the world. Rodamco was subsequently instrumental in the reconstruction of the US business which enabled Westfield Holdings to re-enter the US market.

TheWestfield‘powerhouse’Early in 1994, Westfield was again centre stage, this time in a US shopping centre deal that would bolster its already strong global reputation.

With two partners, the real estate investment trust General Growth Properties Inc and the investment bank Goldman Sachs, it pitched for and won the US$1 billion CenterMark retail property portfolio. The deal tripled Westfield’s US management space, and the rewards were rapid.

In August 1994, Westfield announced a 29.4 per cent improvement in net profits due largely to the US acquisitions. The company’s assets under management were split 50:50 between the United States and Australia.

Until Westfield’s triumph, the press commented that most Australian companies that had tried to invest in the United States had met with disaster. They had struck out and lost many millions. Westfield, however, seemed to be going from strength to strength.

Its board was growing in strength too with the arrival of Rob Ferguson, managing director of Bankers Trust Australia, and Dean Wills, chairman of Coca-Cola Amatil.

On the Australian front, the company was fully occupied, negotiating a shopping centre deal with Coles Myer, the AMP Society and Westfield Trust.

Right: A press release announcing Frank Lowy’s appointment to the Reserve Bank board.

Far right: West Covina shopping centre at the time of the CenterMark transaction in 1994.

Below: An early video press conference with Stephen Johns and Steven Lowy in Sydney with Peter Lowy on the monitor from Los Angeles.

Growth in the 1990s

19 9 0 –19 9 9Building on Strength 99


Within weeks of its establishment, a New York listing was being planned.

The idea was to replicate the Australian trust’s success in the US by having a similar structure in place. The listing would involve an IPO of shares in the 22 CenterMark properties, a real estate investment trust (REIT) that would be capitalised at about US$1.5 billion on listing. CenterMark would be renamed Westfield America, Inc.

By September 1997, Westfield’s shares had risen past the $27 mark and a decision was taken to split them in a ratio of 5 for 1 to make them accessible for small investors.

GrowingandGrowingBy this stage, Westfield had 66 shopping centres under management, including 10 centres in New Zealand that were part of St Lukes Group, New Zealand’s biggest shopping centre company.

While settling into the New Zealand market, Westfield was also stretching its wings in the US. The deals were becoming bigger and more challenging. In April 1998, Westfield America made a bold investment with the $US1.44 billion purchase of 12 shopping malls from TrizecHahn Corporation.

Later that year, Westfield Holdings’ net profit shot past the $100 million mark for the first time and the combined profit of the four Westfield entities totalled $660 million.

Later that year, a biography of the late John Saunders entitled Nothing is Impossible, was launched by the Australian Prime Minister, John Howard.

In late 1999 Westfield in Australia became embroiled in controversy over its opposition to a competing

It was also looking to Asia and exploring a development opportunity in Malaysia with Rodamco. It went on to invest $20 million in a Kuala Lumpur project but in 2000 Westfield disposed of its interest in the centre to Rodamco Asia.

In June 1995, Frank Lowy was appointed to the Reserve Bank Board.

By August 1995, Westfield posted a strong 33 per cent jump in net profit. Newspapers called it the ‘shopping centre powerhouse’ and talked of further expansion in the US market.

Before that ink was dry, there were reports of the opening of the biggest shopping centre in the southern hemisphere, Westfield Shoppingtown Parramatta. The press called it a ‘shopaholics’ heaven’ noting it was even larger than Westfield Shoppingtown Miranda which had been the largest shopping centre in the southern hemisphere when it was completed.

But Westfield was only halfway through the decade. It was about to move into the fast lane and create two vehicles that would drive it to prominence and profit.

RestructuringinAmericaIn May 1996, the first entity hit the road in the form of Westfield America Trust. Through it, Australians were invited to invest directly in the United States retail property market.

The trust was set up to acquire a major interest in CenterMark Properties, Inc. which had a portfolio of 22 centres across America — the 19 properties acquired from CenterMark in 1994 plus three additional regional shopping centres — valued at $2.139 billion.

Right: Biographies of the two Westfield partners. Nothing is Impossible: The John Saunders Story, published in 1999, and Frank Lowy: Pushing the Limits, published in 2000.


development proposal in western Sydney that involved an application to rezone industrial land. Westfield publicly objected to the proposal but also apologised because some of its activities were not transparent. In particular, it was not apparent that a consultant involved in objecting to the proposal was working for Westfield.

By this time, Westfield had built a bridgehead into the United Kingdom. In early 2000 it won an internationally competitive bid and became a partner with Post Office Staff Superannuation Scheme in a $1 billion redevelopment of the Broadmarsh Centre in Nottingham.

Only months after the Broadmarsh deal, Westfield announced it was buying a 50 per cent stake in a portfolio of nine UK centres owned by MEPC and valued at $2.4 billion.

In April 2000, HarperCollins published a biography of Lowy. Entitled Frank Lowy: Pushing the Limits, the book made the bestseller list within a week of being released.

In late 2000, Westfield Trust sold its 50 per cent investment in the Indooroopilly shopping centre in Brisbane. The Trust, usually a buyer of shopping centres, was not looking to sell its interest in Indooroopilly. The offer price of $300 million was, however, simply too good to refuse.

When Westfield Holdings reported its annual results in August 2000, announcing the 40th consecutive year of profit rise, the newspaper headlines said it all: ‘Earnings: Westfield scores a perfect 40’ and ‘Punters just wild about Westfield way’. As the shares hit $13, it was an understandable sentiment.

Right: How the press saw the 40th year results.

The last decade of the twentieth century saw the number of Australian shopping centres in the Westfield portfolio grow significantly as the company also implemented a multibillion dollar redevelopment program to improve its Australian shopping centres.

During the 1990s, the Australian portfolio grew from 21 shopping centres with more than 3600 retailers to 30 shopping centres with about 6350 retailers.

Bankers Trust granted Westfield the management and development rights for two shopping centres — Mount Druitt in Sydney in 1992 and Carousel in Perth the following year. Westfield Trust was awarded the management rights for Fountain Gate in Melbourne in 1994 and then bought the centre in two tranches. The Trust also bought half of Bondi Junction in Sydney in 1995. The construction of Tuggerah, on the Central Coast north of Sydney, was also completed in 1995.

In 1996, a major property and tenancy deal between Westfield and Coles Myer resulted in Westfield Trust acquiring three new centres — Galleria and Innaloo

in Perth and Chermside in Brisbane. The deal was mutually beneficial as Coles Myer wanted to translate substantial properties on its balance sheet into cash for its retailing business and Westfield Trust was a natural buyer. The deal also included a large number of new store deals for Coles Myer tenancies in various Westfield shopping centres. This was positive for both organisations as it enabled Coles Myer to get many new stores on the ground quickly and Westfield to expand its shopping centres.

Westfield Trust effectively bought half of Carindale shopping centre in Brisbane in late 1999.

In addition to the growth of the number of centres in the Westfield portfolio during the decade, 16 Australian shopping centres benefited from redevelopment projects worth a total of more than $2.7 billion.

Redevelopment ensures that shopping centres keep pace with the changing demands of the communities they serve and also remain at the cutting edge of design and retail mix.

expansionandRedevelopment

Australia in the 1990s


The redevelopments of Miranda and Liverpool in Sydney and Doncaster in Melbourne were completed in 1992, with Miranda becoming the largest shopping centre in Australia with a gross lettable area of more than 106 000 square metres. The redeveloped Parramatta and Mount Druitt centres in Sydney and Indooroopilly in Brisbane opened in 1995, with Parramatta expanding to 127 000 square metres of retail space and leapfrogging Miranda to become the largest shopping centre in the southern hemisphere.

The construction of Tuggerah was also completed in 1995. The centre, built on a greenfield site, quickly proved to be a great success and is an excellent example of the way Westfield shopping centres create valuable economic activity for local communities.

In 1997, the redevelopment of Marion in Adelaide was completed and the following year saw smaller projects

completed at Tea Tree Plaza in Adelaide and Strathpine and Indooroopilly in Brisbane. The redeveloped Airport West and Southland in Melbourne, Carousel in Perth and Chatswood in Sydney opened in 1999.

Burwood was the first Westfield shopping centre to be totally demolished and rebuilt and it reopened for business in 2000, following years of planning and 19 months of construction work. On completion, Westfield Burwood was twice the size of the original centre, one of the first in the country when it started trading in 1966.

The decade’s $2.7 billion redevelopment program was completed when Chermside in Brisbane opened in 2000 after 20 months of construction.

Two additional projects with a combined value of $540 million — Fountain Gate in Melbourne and Hornsby in Sydney — were also under construction by the end of the decade, and completed by 2002.

Left: Westfield Carousel, Perth.

Above: Westfield Southland, Melbourne.


Each Westfield shopping centre is subject to intense scrutiny. Everything about it is watched, discussed and, wherever possible, improved.

The centre is not left to drift. It is treated like a child growing up and in need of constant guidance so that it develops into an accomplished, successful adult. But even after it matures, a shopping centre continues to be subject to intensive management focus — sometimes even greater than before.

Westfield perceives its centres as living, breathing assets, which need to adjust and adapt to new trends, conditions and market forces. Unlike an office block, which is locked into its configuration and has limited scope for innovation, shopping centres are dynamic and responsive, capable of accommodating radical change.

Maximising this dynamism is one of the primary components of Westfield’s success with its centres. As much as possible, Westfield tries to achieve this without disrupting the trading life of the centre. This is an exercise in complex logistics.

As the stages of the redevelopment unfold, the

scheduling depends on hour-by-hour precision. Relocations, deliveries, services and construction all have to continue with the least possible inconvenience to retailers and shoppers.

In a centre under redevelopment, the end of the retail day becomes the beginning of the construction shift. A night-time army of tradespeople and supervisors moves in, working until dawn when every trace of their work must be cleared away and cleaned in readiness for the day’s trading.

Sometimes, in major rebuilding projects, the centre has to close temporarily.

The Hornsby shopping centre, which has traded through several incarnations and has also been closed for total rebuilding, is an example of this.

It was the first purpose-built shopping centre constructed by Westfield when it was a public company and in fact the listing of Westfield on the Sydney Stock Exchange funded development of the centre. Although impressive in its day, it was modest by today’s standards. When compared to the modern centre that opened in stages from 2001, the original version – built in 1961 – looks like a newborn baby.

hornsby

A case study

TheevolutionofhornsbyCentre

1961The $700,000 Hornsby centre opens with 22 shops and generates 250 retail jobs

It is credited with playing a major role in attracting new residents to the shire

1966Coles opens its first New World supermarket in NSW at the Hornsby centre

1968A $5 million reconstruction and expansion sees the centre air-conditioned, with 64 shops,

including a Best & Less store, and parking for 300 cars

1971Sydney’s first rooftop theatre restaurant opens at the Hornsby centre, attracting widespread media attention

1976Hornsby centre extended to 89 shops, including a McDonalds

1979The centre is further extended to 96 shops including a Franklins and a Railway Mall costing $850,000

This year the $36 million Northgate Shopping Centre opens in direct competition, with 67 stores, a Grace Bros, a Kmart and a Coles

1996Westfield buys Northgate and plans to combine it with Hornsby into a state-of-the-art major regional centre

1999Redevelopment commences

2000Hornsby closes its doors and becomes a construction site. Part of Northgate closes but 30 specialty stores and the major retailers continue to trade

Late2000Stage One of the redevelopment will open with 50 new specialty shops

early2001Stage Two opens with a Woolworths and 10 specialty shops

Mid2001Stage Three opens, featuring David Jones, Target and 110 specialty shops

Late2001Gala opening of the redevelopment with a 200-seat food court, alfresco restaurant precinct, a new-look Coles and 100 specialty shops

early2002Centre completed with a 10-screen cinema complex


When John Saunders passed away on 6 December 1997 Australia lost a man of extraordinary entrepreneurial flair and business acumen.

It also lost a generous philanthropist. Among other things, Saunders had established the Sydney Jewish Museum and Holocaust Centre and had built and funded the HopeTown Special School for children with mild intellectual disabilities.

As co-founder of Westfield, Saunders combined hard work and vision to drive the company to new frontiers. His optimism, determination and unwavering belief that things can be done, formed the foundations of the Westfield culture.

Under his co-stewardship, the company went from strength to strength. Hardship never defeated him.

During his struggle with a heart condition, he always displayed courage, calm and faith in the future.

He died shortly after his 75th birthday, leaving behind his three children, Betty, Mark and Monica, and grandchildren.

People remember him for his warmth, his humility and, more than anything else, his facility for getting on with people from all stratas of society.

From the day he co-founded Westfield in the late 1950s to the day he retired from active duties in 1987, he continued to make an enormous contribution to the company.

The Westfield that entered the twenty-first century so successfully is still imbued with his indomitable spirit.

WeRemember…

Vale John Saunders AO

Right: John Saunders surrounded by his children and grandchildren.

Far right: John behind his desk on the 18th level of Terrace Tower.


By 1993, Westfield was in an optimistic mood and was preparing to establish a US Real Estate Investment Trust (REIT). It thought the business of managing, developing and fund management would produce better results than direct property ownership and would ensure that the company’s debt remained low.

However, as it became apparent that the REIT market was becoming saturated, Westfield put its plans on hold.

At the time there was a rumour in the industry of a good portfolio of shopping centres being prepared for sale.

These were the CenterMark properties owned by the Prudential Insurance Company of America.

It was the first billion-dollar real estate transaction in the US shopping centre industry. As it happened, Goldman Sachs decided that a winning partnership could be formed between Westfield, General Growth and its own investment arm, Whitehall Real Estate.

The plan was for Whitehall to put in US$100 million and Westfield and General Growth US$200 million each. The outstanding US$500 million would be financed through borrowings.

TheAcquisitionoftheCenterMarkproperties

Right: California’s Westfield Shoppingtown Topanga — the shopping centre damaged by the 1993 earthquake — in 2000.


General Growth was owned and controlled by the Bucksbaum brothers, Matthew and Martin Bucksbaum, who were contemporaries of Frank Lowy. They were extremely successful in the shopping centre business and had, on previous occasions, been Westfield’s competitors.

It was unusual for any developer to join forces with General Growth, much less form a whole team to acquire a shopping centre portfolio.

After much discussion, General Growth and Westfield decided they would be compatible and gave the joint bid the green light.

The negotiations, however, went through some difficult patches, with dramas and several notable ups and downs. One evening, all the principals were gathered in Newark, New Jersey, to discuss a threshold issue with Prudential. There were about 25 people in this negotiation — a recipe for collapse.

The debate went back and forth, it was two o’clock in the morning and the air-conditioning was turned off. The temperature was boiling. The room was closed, personal resources were wearing thin and nerves were at breaking point.

Then something was said that bothered one of the Bucksbaums and they angrily got to their feet and declared the negotiations over. ‘Let’s go,’ they said to their team.

Everyone walked out. It was 3am and the all-pervading mood of depression was palpable among the General Growth–Westfield team.

A couple of days later, however, everyone regrouped. Frank Lowy had arrived from Australia and the three partners proceeded to embark on an evening of shuttle

diplomacy. The Prudential group was in one room, the three partners were in another and Goldman Sachs was working the rooms trying to conclude the transaction.

After the deal was made and announced, but before it was settled, an earthquake struck the San Fernando Valley where one of the shopping centres under negotiation was located. Topanga Plaza was damaged to the tune of US$25 million.

The syndicate renegotiated the deal and Prudential gave a US$25 million credit off the sale price. It was a salutary reminder of the importance of having provisions for such crises in the documents.

Once the CenterMark properties were acquired, however, a new set of problems arose. Both General Growth and Westfield wanted to manage the portfolio. Eventually, a compromise was struck and Westfield emerged as the lead manager. In practice, this meant that Peter Lowy and Richard Green would be the day-to-day managers and operators and would report to a board that consisted of the two Bucksbaums, two executives from Goldmans and two from Westfield.

The CenterMark deal was finally settled in February 1994. CenterMark was a watershed for Westfield. After

17 years in the United States it had become one of the largest owner/managers of shopping centres in the country and was placed in the top five owner/managers of regional malls in the world. Westfield had 24 centres in Australia and 26 in the United States.

It would be a couple more years before the REIT market bounced back. When it did, Westfield was poised to float the Westfield America Trust.


By the mid 1990s, Westfield was one step closer to reproducing in the United States its successful Australian business strategy. It announced it had outlaid about $100 million to increase its stake in CenterMark from 40 per cent to 50 per cent, and had obtained a nine-month option to buy out the remaining 50 per cent.

By May 1996, Westfield was preparing to spin off its US operations through a sharemarket listing on the Australian Stock Exchange which would involve raising about $400 million in fresh capital.

WestfieldAmericaTrust

Project FINAO – Failure is Not an Option

The new vehicle, called Westfield America Trust (WAT), would become the major shareholder in the CenterMark portfolio which consisted of 22 retail properties in the US valued at $2.139 billion.

Westfield would exercise its option on the remaining CenterMark assets. In a complex arrangement, CenterMark would be 67.2 per cent owned by the new trust, 14.2 per cent by international investors and 18.6 per cent by Westfield Holdings Ltd.

Westfield’s two partners in CenterMark both stood to make handsome profits. Through selling their stakes, General Growth would make $100 million and Whitehall $50 million.

But creating the trust was an excruciatingly complex process, with many variables and issues. On one of the numerous long flights from Australia to the United States, Westfield’s executives watched the film Apollo 13 and instantly recognised in the film a characteristic that exemplified their company. Westfield had been determined from the outset that the trust would work. For it, as for the team on Apollo 13, failure was not an option. From that moment on, the demanding and seemingly impossible campaign to float WAT was nicknamed FINAO, the acronym for ‘failure is not an option’.

When the company launched the prospectus for WAT in May 1996, more than 7000 investors subscribed. The float attracted substantial buying support from major institutions along with thousands of individual investors. This demonstrated confidence in the ability of such a diverse portfolio to produce increasing income returns and capital growth for Australian investors.

The trust was launched at a time of positive growth in the US economy. It was the only existing Australian-listed property trust with investments solely in the United States and provided Australians with a unique investment opportunity.

It was always part of Westfield’s ambition to go public in the United States, but it had not anticipated such a benign environment as early as 1997. The coincidence of a strong retail sector, buoyant consumer sentiment and the re-rating of the US REIT sector presented an opportunity too good to miss.

The exercise would allow Westfield to tap into a vast capital market which would enable it to expand its business in the United States.

Some outside the company sounded gloomy cautions. While acknowledging that the float, if successful, would establish the Westfield brand in the United States, The Australian Financial Review warned that in the three-month run-up, the whole thing could sink if the stockmarket went into reverse. The Federal Reserve had further suggested there could be a lift in interest rates to knock some of the irrational exuberance out of the stockmarket.

The complex, multilayered deal revolved around a $400 million initial public offering of shares in CenterMark Properties, Inc. which would be capitalised at about US$1.5 billion upon listing.

It would be named Westfield America, Inc. and would be a copy of the Westfield America Trust.

In the days before the float, four critical articles appeared in the media. It would have been understandable if Westfield had been knocked out and had retired hurt. But it hadn’t.

It worked harder to fine-tune the offer and revise its position. During the final few days, documents had to be endlessly redrafted and reprinted.

When it came to setting a price, it quickly became clear Westfield was not going to receive the $16 a unit it had hoped for. A solution was found and, at $15, the exercise was given the green light.

At 9.45am on 21 May 1997, the words ‘1.2 million shares traded at 15 and 3/8s’ moved across the large electronic board above the New York Stock Exchange.

The listing raised US$300 million and placed Westfield third in the US shopping centre industry.

In the buoyant REIT market, the shares surged to $18 that year. Over the next couple of years, however, REITs fell out of favour.

ListingonWallSt

Westfield and the New York Stock Exchange


Right: Checking documents that required signing for the IPO.


When the TrizecHahn portfolio became available in 1998, it was extraordinarily attractive to Westfield. Much of the portfolio was situated in and around California and would fit in perfectly with Westfield’s regionalisation program.

It would, for example, give Westfield a substantial foothold in the San Diego market, enabling it to use network TV to do cross-marketing and providing leasing advantages and several other positives.

The Westfield war cabinet quickly went into action. All attention was focused on finding a way of acquiring the properties.

The portfolio was being marketed by Merrill Lynch and leading shopping centre companies such as General Growth, Simon, Rouse, and Macerich were bidding. Virtually anyone who had a sizeable business was attracted and competition was fierce.

Westfield determined that the best way to proceed was to create a joint venture arrangement with one of the other players. Working with Goldman Sachs, it was decided that a productive partnership could be formed with the Rouse Company.

When the two sides came together, it was a meeting of two cultures. ‘It was rather like the Australian

cowboys meeting the conservative, settled American establishment,’ says Richard Green. ‘Most observers said it was a match that couldn’t be made.’

Despite the perceived cultural differences, the individuals in each company got on very well and enduring friendships were formed. They sat down and knocked out a deal to separate the properties: Westfield would take all of the West Coast properties and Rouse everything on the East Coast.

The new partners were able to get in very quickly, analyse the properties and make judgments. Due diligence periods usually occur after the bidding process but the partners wanted to do it before, so they could have a clear idea of exactly what was on offer.

The Rouse/Westfield partnership eventually won and was able to split the properties as agreed. The US$1.4 billion deal to acquire the 12 properties in California led to Westfield being the dominant retail property player in the state.

Fortuitously, Westfield acquired the properties at a time when the California economy was just beginning to come out of the doldrums.

TheWestfieldWarCabinetatWork

Acquiring the TrizecHahn portfolio

Above left: Valley Fair in the late 1990s.

Above right: Fox Hills, now Westfield Culver City, at the time of the TrizecHahn transaction.

Right: Westfield Horton Plaza, San Diego, California, in the 1990s.


In the mid-1990s the St Lukes Group Ltd had gone public after spinning off from another larger company. St Lukes was New Zealand’s largest shopping centre company.

As it happened, Bankers Trust in Australia had bought a large stake in St Lukes and recognised the opportunity to enhance the company by outsourcing management and development. Because of its knowledge of Westfield’s skills, BT approached Westfield to take over this role.

In early 1997 an agreement was struck and Westfield began to manage this new portfolio. When, some time later, BT wanted to exit the company, Westfield, which by now had a full appreciation of the assets and their potential, bought BT’s stake.

The 46.6 per cent stake was bought by the Westfield Trust for $276 million. At the time, St Lukes wholly owned eight centres and half-owned another two.

There was significant redevelopment potential in the portfolio and planning commenced immediately. One of the first priorities was to introduce integrated entertainment and lifestyle retailing to New Zealand’s shoppers.

The following year St Lukes acquired a major centre in Wellington, secured a development site in Auckland and continued with other redevelopment in Auckland.

In 2000, St Lukes Group Ltd investors voted overwhelmingly in favour of a proposal for Westfield Trust and St Lukes Group Ltd to amalgamate their New Zealand shopping centre interests. The proposal entailed Westfield Trust acquiring full ownership of St Lukes Group Ltd.

The Westfield Shoppingtown brand was launched in New Zealand in September 2000, making Westfield the first shopping centre owner to brand New Zealand shopping centres.

VeryClosetohome

Expanding into New Zealand

Shopping centres in the St Lukes portfolio around the time Westfield assumed management. Clockwise: Riccarton; Glenfield and flagship, St Lukes.

The Westfield Group Comes of Age

2000–2009 A Global Structure for a Global Company

116 WeStfield 5 0 ye ArS

Following a decade of unprecedented growth, Westfield began the new century with considerable optimism, a strong global economy driving retail sales and retailer demand for quality shopping environments. In the 1990s, Westfield had become a significant force in Australia, New Zealand and the United States, and the geographic diversity, scale and quality of its shopping centres were a major competitive advantage.

Westfield’s optimism was buoyed by the remarkable new millennium celebrations held around the world, and by the hosting of the 2000 Olympic Games in the city of its corporate headquarters – Sydney. This event focused the world’s attention on Australia, and Westfield – as one of its largest corporations – sponsored the event and its athletes. As Westfield executives watched from their headquarters the spectacular fireworks show that erupted over Sydney Harbour in celebration of the arrival of the 21st century, they could not help but be struck with an enormous confidence in the future.

The United States was set to swear in a new president. In the United Kingdom, the political and economic landscape had been stable, and while the economy was growing slowly, Westfield was in locations best placed to take advantage of higher spending. Australia and New Zealand too were stable, Australia continuing its long run of economic expansion driven by a seemingly endless appetite for Australian resources from the rapidly emerging economies of China and India.

International economic growth and employment were strong; financial engineers in the United States were creating new instruments, fuelling cheaper and more available credit; and international brands and retailers were looking to capitalise on increasing discretionary consumer spending. It was a heady time, and Westfield’s leadership was determined to structure and shape the company to exploit these international opportunities.

‘We are dealing in a global market; we are not an Australian company.’ – Peter loWy, 2004

A New Century Begins

Right: Millennium Celebrations, Sydney Harbour, New Year’s Eve 2000.


Westfield had begun the decade with a structure that had served all its constituents well. Each of the entities had delivered outstanding returns and value to long-standing shareholders. Each had been overseen by a talented, experienced and committed board and management.

At the time, the Group was actually three ‘entities’ that were all separate vehicles listed on the Australian Stock Exchange (ASX): Westfield Holdings Limited, originally listed in 1960, which provided management and development expertise; Westfield Trust, listed in 1982 and owner of the Australian shopping centre assets; and the Westfield America Trust, created in 1996 and owner of the US assets.

However, the more Westfield internationalised, the more necessary it became to create a global operating and financial structure to match the increasing international opportunities.

Westfield Group’s General Counsel, Simon Tuxen, said the transaction to merge the three entities into what we now know as the Westfield Group was by far the most challenging and complex commercial transaction undertaken in the market for some time and the most significant capital restructure in the Group’s history.

In order to create a single entity with a global portfolio valued in excess of $50 billion as well as unparalleled capabilities in all aspects of retail design, development and management it would need the approval of three independent boards and at least 75 per cent of the members of each entity who voted on the proposal, as well as the Supreme Court of New South Wales.

‘It was a daunting challenge, and not undertaken lightly,’ he said. ‘It called for total commitment and around-the-clock work by the Westfield team and our advisors in

multiple jurisdictions,’ said Tuxen. ‘This transaction tested all of the qualities we aspire to

at Westfield – professional excellence, attention to detail, the identification of issues ahead of time, teamwork and hard work. The team delivered on all fronts.’

Implementing a transaction of this size and scope required a detailed review of every aspect of the Group and its business including how it would be perceived by investors and how a group of this size would be funded, as well as the accounting, legal and tax implications of the change. Every aspect of the Group was impacted by the merger and needed to be reconfigured in light of it.

The Group had also observed examples of similar transactions that were derailed through poor execution. It was absolutely imperative to strike a deal that treated the members of each entity fairly and then not waiver from those terms throughout the approval process. Ultimately it was a proposition that each entity approved, knowing that the sum of the parts would create a property powerhouse.

In June 2004, almost 44 years after the listing of the Westfield Development Corporation Limited, shareholders of each entity granted approval for a merger of the three entities, creating the largest listed retail property group in the world. A $34 billion conglomerate – with financial strength to match any global competitor and unrivalled capabilities in every aspect of the design, development and operation of retail centres – was born.

Having announced the transaction in April and completed by June with its listing, the Group’s execution of such a complex transaction in such a short period of time reflects both the professionalism and dedication of its executive team.

the Birth of the Westfield Group

2 0 0 0 –2009 A Global Structure for a Global Company 119

It was a historic moment for the company and a pause for reflection on the significance of the Westfield achievement. Perhaps unsurprisingly and despite being clearly proud, there was little time for nostalgia for Frank Lowy. Westfield was more interested in the opportunities the structure would bring from balancing global operations and financing with global opportunities. About that there could be no doubt. ‘The merger will combine the financial strength and capabilities of each entity to provide the Group with the scale it needs to pursue growth opportunities internationally,’ he told shareholders.

It was no surprise, then, that Westfield was soon demonstrating its greater clout and flexibility. As a more transparent, easily-understood company, with an increasingly international investor base, a large and growing geographically diverse portfolio of quality shopping centre assets and a strong development pipeline, Westfield was quickly on the move.

By the end of the year, the Group had acquired $3.4 billion in strategic assets in the UK and Australia, undertaken a US$2.6 billion bond issuance, and completed a US$4 billion global syndicated facility.

Now a major player with an enviable position in each of its markets, with global reach and with an established reputation for quality and innovation, Westfield reached the half-way point of the decade in a hurry, with a continuing appetite for the best properties in the best locations in its established territories and with a strong, sustainable development pipeline of nearly $7 billion.

In years to come, the merger would prove to be the structure that ultimately facilitated the new company’s global growth.

77—THE DAILY TELEGRAPH, www.dailytelegraph.com.au Saturday, June 26, 2004—77

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BUSINESS

ADVERTISING company Creatable Media plans to list

on the stock exchange in August to expand its tabletop

advertising in shopping centre food courts.

The company, based in Sydney, wants to raise $9 million

from investors to further its growth plans which include the

purchase of up to 18,000 tables.

Its initial public offering, underwritten by broker ABN Amro

Morgans, involves 45 million shares at 20c each.

Chief executive Craig Lazarus said Creatable Media already

had more than 5000 tabletops in 40 shopping centres in

Australia and by the middle of next year, would move into 35

other centres in Australia and New Zealand.

It presently has deals with Westfield Australia, Lend Lease,

AMP, and Westfield New Zealand.

Packer casino

bid extendedJUST days after Burs-

wood urged its share-

holders to sit tight on Pub-

lishing and Broadcasting’s

takeover bid, PBL has ex-

tended the offer period for

the Perth casino operator.

The bid, which was due

to close on July 2, will now

run to July 16.

In a carefully worded

statement mid-week,

Burswood’s directors ad-

vised shareholders not ac-

cept the bid ‘‘at this stage’’.

Kerry Packer’s PBL of-

fer of $1.40-a-share will rise

to $1.46 if conditions are

met. The full $1.46 per

share offer will only come

into play if PBL receives

more than 90 per cent of

shares — and Burswood’s

board unanimously en-

dorses the bid.

Dollar, gold march to the same drum

Markets

By NATHAN CROSS

THE dollar hurdled US70c

yesterday, with currency tra-

ders ditching the US greenback

after learning demand for dur-

able goods fell in May.

The exchange rate went as

high as US70.10c, only to close

the session at US69.81c.

Gold marched to same drum

as the dollar, rising $US7.90 an

oz, or 2 per cent, to $US402.70.

Australia is the world’s third

biggest gold producer after

South Africa and the US.

ABN Amro currency strat-

egist Gerard Minach said our

dollar’s rise ‘‘had more to do

with the US dollar’s weakness

than any supposed strength in

the US economy.

On the sharemarket, strong-

er base metals prices prompted

investors to switch into mining

heavyweights, while News Corp

shares recovered some of

Thursday’s heavy losses.

The All Ordinaries index fell

1.8 points to 3523, with most of

the weakness in the banks.

Baker Young Stockbrokers

equity adviser Toby Grimm

shares had been positive for

most of the day.

‘‘What we saw was a bit of

weakness across the banks. I

think that is just profit taking

on the run that they have had,’’

he said. ‘‘There was some

strength in the cyclicals and

resources on the back of some

positive moves in base metals.’’

ANZ fell 14c to $18.37, the

CBA dropped 27c to $32.99,

NAB slipped 18c to $29.86 and

Westpac dipped 4c to $17.63.

In the resources sector BHP

Billiton added 7c to $12.37, Rio

Tinto rose 32c to $35.89 and WMC

Resources lifted 3c to $4.94.

News Corp shares rose 7c to

$12.65 and its preferred scrip

climbed 12c to $11.70.

AMP Capital Investments

chief economist Shane Oliver

said investor anticipation of

the US Federal Reserve’s de-

cision on interest rates and

transfer of political power in

Iraq — both on June 30 — had

caused many to sit on the

sidelines this week.

Chic debut for

lingerie groupLINGERIE seller

UnderCoverWear got a

push-up from investors

when it debuted on the

stock exchange yesterday.

The direct-to-the-public

retailer closed at 60c from

an issue price of 50c, with

more than 1.45 million of

the 48 million issued

shares changing hands.

Chief financial officer

Francois Hoffmann said

UnderCoverWear would

now set about tripling its

business within five years

by recruiting thousands

more salespeople to run

selling parties.

Lingerie, underwear and

sleepwear are sold at shop-

ping parties in the homes

of hostesses in a system

UnderCoverWear has

used for 23 years.

Forty-five years ago, Frank Lowy opened a £250,000

mall at Blacktown. His empire is now the world’s . . .

■ Partners Frank Lowy and the

late John Saunders opened their

first shopping centre, Westfield

Place in Blacktown, in July 1959

■ It cost £250,000

■ They hit on the name Westfield

as they did business in Sydney’s

western suburbs and sub-divided

farmland – ‘field’.

■ Yesterday’s vote approving the

merger plan means Westfield

Group will manage about $30

billion of assets

■ The group spans 123

shopping centres in Australia,

New Zealand, the US and UK.

■ It will be the eighth biggest

publicly listed company in

Australia - coming after

Telstra and before

Woolworths.

The company’s origins

Main picture: Frank Lowy at yesterday’s meeting

Top left: Aged 21, just before arriving in Australia,

Centre: Promotional material for the first store

Bottom: Westfield’s first shopping centre, which was

built in Blacktown Picture: RENEE NOWTYARGER

Biggest retail landlordWESTFIELD boss Frank Lowy

has been successful in his plan to

merge the shopping centre em-

pire into a single, $26.6 billion

group — the biggest listed one in

the world.

Members of the three Westfield

entities yesterday overwhelmingly

approved the merger plan, which

will bring together Westfield Hold-

ings and its two trusts, Westfield

Trust and Westfield America.

Mr Lowy told the meeting he felt

‘‘very proud’’ that the shopping cen-

tre empire he built up from a small

shop in Sydney nearly 50 years ago

had now become the biggest of its

type in the world.

‘‘This is a historic day for West-

field, and just a little bit nostalgic for

me,’’ he said.

‘‘My partner, the late John Saun-

ders and I had big dreams, there is no

doubt about that, but neither of us

could have predicted such a future.’’

More than 300 security holders

cast ballots at a combined meeting,

in Sydney’s Entertainment Centre

and, after counting, approval came

in between 95 and 99 per cent.

He reiterated his main reason to

push for the merger — to give

Westfield the extra bulk needed to

grow in the world’s largest shopping

centre market, the US, as well as in

places like the UK and Europe.

‘‘The rationale for the merger is all

about growth and global opportuni-

ties,’’ he said.

Westfield now requires court ap-

proval for the merger, which is ex-

pected to become effective on July 2.

The securities of all three entities

will be stapled together under the

Westfield Group.

The whole process from announc-

ing the plan to the Westfield Group

trading on the Australian Stock

Exchange will end up taking less

than 11 weeks, with trading ex-

pected to begin from July 5.

Mr Lowy reassured shareholders

he did not plan to follow in the

footsteps of News Corporation and

relocate overseas, or pull out of the

Australian Stock Exchange to list

on Wall Street.

‘‘I can tell you categorically that we

have no plans to do that,’’ he said in

answer to a query from an investor.

‘‘It’s quite difficult to run a global

organisation from Australia, but we

are doing it because we want to be

here. Conditions will have to be very

substantially changed for us to

make a move.’’

Westfield America trust security

holders were the least enthusiastic

about the merger plan, with a little

under 5 per cent voting no.

One unitholder commented at the

meeting he felt Westfield America

had been undervalued in the

merger. But most security holders

were glowing with praise for Mr

Lowy, who mingled with them dur-

ing tea and coffee after the meeting.

One shareholder said she had

faith that Mr Lowy and his three

sons Steven, Peter and David had

made the right decision.

‘‘It has been a very successful busi-

ness for years and years,’’ she said. ‘‘It

has been very well run, a sound

investment, we just keep the faith.’’

Westfield Holdings shares closed

28c lower at $15.32, while units in

Westfield Trust slipped 8 to $4.37 and

in Westfield America fell 4c to $2.37.

— Wire services

has been successful in his plan to

merge the shopping centre em-

pire into a single, $26.6 billion

group — the biggest listed one in

Members of the three Westfield

‘‘My partner, the late John Saun

ders and I had big dreams, there is no

doubt about that, but neither of us

could have predicted such a future.’’

More than 300 security holders

cast ballots at a combined meeting,

s Entertainment Centre

proval for the merger

pected to become effective on July 2.

The securities of all three entities

will be stapled together under the

Westfield Group.

The whole process from announc-

ing the plan to the Westfield Group

trading on the Australian Stock

answer to a query from an investor.

‘‘It’s quite difficult to run a global

organisation from Australia, but we

are doing it because we want to be

here. Conditions will have to be very

substantially changed for us to

make a move.’’

Westfield America trust security

holders were the least enthusiastic

with a little

faith that Mr Lowy and his three

sons Steven, Peter and David had

made the right decision.

‘‘It has been a very successful busi-

ness for years and years,’’ she said. ‘‘It

has been very well run, a sound

investment, we just keep the faith.’’

Westfield Holdings shares closed

28c lower at $15.32, while units in

Westfield Trust slipped 8 to $4.37 and

in Westfield America fell 4c to $2.37.

Wire services

The Port of Brisbane is here for people who think ahead. Patrick chose Brisbane to establish the world’s first terminalwith automated straddle carriers, a multi-million dollar investment that willradically change cargo handling efficiency.Other big names have also chosen thePort of Brisbane for its commitment toinnovation and technology– and theirfuture looks good. www.portbris.com.au

PO

B0281

Here for the provident.Matt Hollamby, Brisbane Manager, Patrick Terminals

The Sydney Morning Herald

smh.com.au Thursday, May 27, 2004 Business 29

CBD

Christine Lacy seeselephantsmake love.

Geoff ‘‘Peter Pan’’ Dixon . . . a callow youth compared to some.

Propertygiants doleout big fees

Maybe the adviser to property’sleading lights, escapedWarburglar AndrewPridham,should just buy his beloved Syd-ney Swans outright?Not like he can’t afford it,withPridham–who these days pullsthe levers at his ownboutique,Grange First Provident – set tonab almost $3million (includingwhat’s believed to be a fat successfee) fromhis key role in the bak-ing of Frank Lowy’s corporate pie.Pridham’s not the only onescooping from the honey pot,with a total of $40million in feesto be shared between virtuallyevery advisory shopfront in theland – exceptMacquarie, whichmissed out on a role in themegamerger but at least got some-thing on the roundabout, advis-ingGPT in the Lend Lease bid.On top of the $40million,Grant Samuelmilked $1.25million for casting its third eyeover the deal, while Ernst &Young got a total of $4million.Nowonder then that the bigboss is shaving back his ownpaypost-merger.

Doing his bit for the share-holders, if the deal’s approved,next year Frank Lowy’ll get an $8million salary and $4millionperformance bonus,which risesto $5million the next year.That compareswith $15.2million the billionairewas to getnext year under his existing con-tract and $17.2million the next.The abacus tells us that’s a paycut ofmore than a quarter and athird in the next two years.

Lonergan in crosshairsMobilised, the Packers last nightweremanoeuvring the Scudmissiles to target the tombstonemarking Lonergan Edwards’latest role as an independent ex-pert: assessing the PBL empire’sbid onBurswood.Meantime, valuation guru andone-time Securities Institute elpresidenteWayne Lonerganchannels Gandhi and his philos-ophy of passive resistance.The independentlyminded ex-pert, we understand, has just or-dered publisher Allen&Unwin toreprint hisweighty tome TheValuation of Businesses, SharesandOther Equity (fourth edition,we think).

‘‘Compulsory reading,’’ cry thethousands of graduates of theSIA’s Applied Valuations and

Mergers andAcquisitionscourseswho litter this city and(just like TAB chair GrahamKelly) knowLonergan to be damanwhen it comes to thetechnicalities of NPV, theWACCand the beta.Andwith Burswood sharestradingwell above Packer’s bidprice, there’s been plenty for theguru to cast his eye over. Hislatestwork,we hear, is due be-fore the end of theweek.

CrazyJP’s demosaleCan’t be long before JPMorganstarts advertising surplus floorspace.Latest down the lift is health-care analyst Sean Laaman, off torivalWall Street firmMorganStanley to replaceDavidWanis,who recently left for life on thebuy sidewith Schroders AssetManagement.

Opportune time for Laaman(who’ll also cover biotechs) toswitch camps –with no love lostbetween himandhis old em-ployer after a recent internal spatover his informalmusings on thequality ofMaynemanagement.Can’t have been comfortablewith JPMorgan chair PeterMason also on theMayne board.Will be interesting, too, towatch how relations develop be-tween Laaman and thehealthcare giant at his newhome,withMorgan Stanley ad-viser toMayne on the recentfailed pharmacy services sale.Since JPMorgan boss TrevorLoewensohn left for theWarburglars andMike Tilley en-tered the picture, the chairs havebeen emptying at a rapid rate.Research boss Paul Brunkercan’t havemany colleagues leftwithwhom to share a sandwich,having axed five analysts inMarch and seen two out the doorof their own accord before that.On the corporate side, KevinJacobsen leftwith Loewensohn;GeorginaWells has gone, as hasECMVPMargaret Pirrie.StephenChipkin is believed to beon sabbatical and propertymanAntonyGreen has gone to the

Multi-Millionaires Factory.The firm advertised for ana-lysts and associates in recentweeks butwe reckon that’s just soTilley doesn’t have tomake hisown tea.

Bigger thanBenHurIn contrast, Laaman’s recruit-ment toMorgan Stanley con-tinues a consistent programofgrowthwith the head count nowup to 220 in this country.Plan is to increase researchcoverage to about 120 stocks inthe near term fromabout 80now.More heads are on theway.Also in the door in the nextfewweeks is formerGoldies re-search salesmanMikeRyan,whoresigned in Sydney onTuesdaynight after a decade as aWereblueblood.As head of sales, Ryanwillwork under head of equities IanChambers and joins fellownewrecruit LouiseMylott, a formerportfoliomanagerwith ING.

Keepon flyingGeoff Dixon isn’t about to give uphis seat in the cockpit of the Fly-ing Kangaroo.Asked about his longer termplans yesterday at the Press Clubin Canberra, the 64-year-oldQantas boss reminded the audi-ence –which included his daugh-ter, who’s studying law in thenation’s capital – that hewas rela-tively young compared to someof his aviation peers.

‘‘Delta Airlines recently ap-pointed a new chief executive –he’s 70 and they gave him a five-year contract. Boeing just ap-pointed a guy at 69 and they gavehima five-year contract, so youknow I’m going to hang aroundfor awhile.’’Asked if hewere afraid ofMark Lathambecoming PM,Dixon replied: ‘‘JohnHoward andMark Lathamhave never toldmehow to runQantas and I don’tthink I’m going to get into theNational Press Club to tell themhow to runAustralia, so I thinkI’ll pass on that.’’

Plenty of gloss on Nick ScaliNick Scali Furniture yesterdaydefied the languid conditionsfor new listings by delivering itsinvestors a 29 per cent premiumon its first day of trading.Shares in the furniture im-porter and retailer opened at$1.21 and closed at $1.29, com-paredwith the $1 issue price setfor its Wilson HTM $81 millionfloat.Managing director AnthonyScali said that although he hadbeen concerned about the stateof the float market, the companyhad done better than other re-cent listings because it was agrowth company as opposed tothemature businesses floated re-cently by private equity groups.One of the private-equitydeals, Bradken, which is hopingto raise at least $245 million,has opened its three-day insti-tutional pricing period.

There was talk that while ithas attracted some offshore in-vestors, because of its involve-ment in the resources market,local investors are lukewarm onthe deal ahead of the plannedlisting on Monday. The floatmanagers are not consideringoffers below the indicativerange of $2.40-$3.00.The venture capital house be-hind the Bradken deal, CHAMP,defended the approach of pri-vate equity groups amid theweak trading prices of severalrecent floats.CHAMP’s Bill Ferris said: ‘‘Weare clearly hopeful that peoplewould get an increasing priceover time in a stock. We don’tever want it otherwise.‘‘Some of these recent floatsas it turns out have not per-formed but, I think, theyeventually will.’’

In Nick Scali’s case, the pro-ceeds are largely going to thefounding family, which retainsa half share in the listed entity.The stag profit was put downto the fixed price structure ofthe float, whereas some of therecent larger floats have been‘‘book-builds’’ where the finalprice is set close to listing andafter a bidding process involv-ing institutional investors.Mr Scali played down con-cerns that Nick Scali’s 2005forecasts were vulnerable tomovements in the $A/$USexchange rate, as most of thecompany’s furniture is im-ported from Asia.He said because Nick Scaliwas also a retailer it was in aposition to reset its prices totake account of exchange ratemovements.

Anthony Hughes

Westfield merger wins ’em overCarolyn CumminsCommercial Property Editor● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Biggest is best . . . shoppers at Eastgardens, Pagewood. The market capitalisation of all three Westfield entities is now about $25 billion. Photo: AFP

The proposed $22 billion-plusmerger of Westfield Holdingswith its listed trusts has beengiven the thumbs up by indepen-dent experts and market analysts.In a 100-page explanatorymemorandum, released to inves-tors yesterday, Grant Samuel &Associates concluded that themerger was equitable and in thebest interests of investors in allthree Westfield entities.The reports says: ‘ ‘GrantSamuel believes that WestfieldHoldings shareholders, West-field Trust unit holders andWestfield America Trust unitholders are receiving an equi-table share of the merged grouprelative to their contributions tomarket value.’’The memorandum and itsvarious reports confirm the keyfinancial data and forecasts fordistributions made when theproposal was announced onApril 22. These include a 7 percent rise in distribution to $1.10for the merged Westfield group.In a letter accompanying thememorandum, Westfield chair-man and founder Frank Lowyclaimed substantial benefitswould flow to the three entities,and that it represented a ‘‘win,win, win’’ for investors in theshort and long term.‘‘The investment market hasviewed the merger favourably,’’he said.

‘‘The market capitalisation ofthe three entities on April 22 wasabout $22 billion, and this hasincreased to about $25 billion.‘‘The proposal has the unani-mous support of the directors of

each of the Westfield entitieswho have recommended thatmembers vote in favour of theproposal.’’The memorandum will bemailed to investors in WestfieldHoldings, Westfield Trust andWestfield America Trust. Inves-

tors in all three entities will meeton June 25 to vote on themerger.In a note to clients, GoldmanSachs JBWere said the base casevaluation was about $15.08 astapled security based on the cur-rent set of assets and those in thedevelopment pipeline.

‘‘In its current format, we be-lieve the merged group candeliver distribution per sharegrowth of 8 per cent in the near-term,’’ the broker said.‘‘However, this may fall, due tohigher United States interestrates, which would reduce the

spread between the US and Aust-ralia’s rates. A primary variable isthe external growth from acqui-sitions. This can be an offsettingfactor in the rising interest rateenvironment.’’Westfield Holdings closed up9c to $14.66.

RBA anointed to solve Eftpos stand-offAnthonyHughes● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

The competition watchdog yester-day appeared to give its blessingfor the central bank to interveneafter the banks and retailers failedto agree on voluntarily reformingthe Eftpos payments system.The Australian Competitionand Consumer Commission’schairman, Graeme Samuel, toldtheHerald last night it was not forhim to indicate what the ReserveBank of Australia, which haspowers to regulate the paymentssystem, should do, but the issuewas now ‘‘unco-ordinated’’.‘‘As a result, consumers are notgoing to get the benefits of reformthat could only be achieved if asingle body took on the process ofreform,’’ Mr Samuel said.The RBA, which has yet to com-

ment on the matter, would usesimilar powers to those invoked toreform credit cards, but the centralbank is also under pressure be-cause those reforms have resultedin banks increasing other card fees(such as annual fees) to claw backsupposed gains for consumers.The payments reform agendawas put in doubt on Tuesday afterthe Australian Competition Tri-bunal supported the views ofretailers by blocking an ACCC-backed voluntary plan by thebanks to remove Eftpos inter-change fees because the agree-ment was unlawful and wouldn’tbenefit consumers. The bankswere accused of not providingenough ‘‘hard information’’ tosupport their case.Interchange fees worth $170million a year are charged be-

tween banks involved in Eftpostransactions and passed on tomerchants and consumers. Butthe issue is complicated becausesome large retailers, notably ColesMyer, enjoy a cut of this fee forevery transaction. The retailersalso believe there is not enoughcompetition between the banks toensure zero interchangewould bepassed on to them in the form oflowermerchant fees so they couldpass on the savings to consumers.The Australian Consumers As-sociation also said yesterday that itwas supportive of the reforms, butcriticised the regulators’ handlingof the issue.The association’s financial ser-vices policy officer, CatherineWolthuizen, said Eftpos reformwas a ‘‘critical part of paymentsreform’’ in both improving the ef-

ficiency of the system and increas-ing the use of Eftpos over credit.‘‘Leaving it up to the industrygroup has not seen the consumerbenefit properly exposed,’’ shesaid.Mr Samuel said Eftpos reformhad ‘‘to be dealt with’’ but rejectedcriticism that the regulatorsshould have dealt more forcefullywith the matter earlier.TheAustralianRetailers Associ-ation only wants the central bankto improve competition in the sys-temby opening themarket to newspecialist providers of Eftpos ser-vices. It said most consumerswould not benefit from zero inter-change fees because most card-holders never exceed the numberof fee-free transaction on Eftposthat is allowed each month by thebanks.

Landmark, huge cropdeliver $54m to AWB

Harvest . . . Colin Hunt brings in the Mildura crop. Photo: Angela Wylie

Philip Hopkins● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

A recordwheat crop as parts of thecountry emerged from droughtand contributions from the Land-mark acquisition pushed up AWB’sinterim profit by 81 per cent.AWB, Australia’s monopolywheat exporter, yesterday re-ported net profit after tax of $54.1million for the six months endingMarch31, up from$29.9million inthe same period last year.Managing director AndrewLindberg said the result put AWBwell on the way to achieving itsfull-year profit forecast of $110million to $120 million.Total operating revenue in thefirst half was $2.9 billion, a rise of186 per cent on the previous year.Chief financial officer PaulIngleby said that this figure in-cluded $740million revenue fromLandmark.Mr Lindberg said larger wheatvolumes were the major cause ofimproved results across manybusiness streams.

Wheat production from the2003-04 wheat harvest was a re-cord 25.2 million tonnes, 160 percent higher than the 2002-03 har-vest of 9.7 million tonnes.The larger volumes were re-flected in the Melbourne Port ter-minal, where earnings beforeinterest and tax rose by 300 percent to $1.2 million.AWB’s earnings per share were16.3c, 50 per cent higher than lasthalf-year’s 10.9c.Directors declared a fullyfranked interim dividend of 14c ashare that will be paid on July 2for shareholders registered onJune 18.The company said the boardintended tomaintain a stable divi-dend subject to future financialperformance and capital require-ments.The profit before tax contri-bution from Landmark for thehalf year was $29.6 million.Mr Lindberg said that the im-proved seasonal conditions hadimprovedmost Landmark sectors:

merchandise, fertiliser, livestock,real estate, finance and in-surance.So far, the revenue andsynergies from integrating Land-mark totalled $4.2 million, whichwas on target for the full-yearsavings forecast of $5 million to$10 million, he said.

Mr Lindberg said AWB wasforecasting domestic wheat pro-duction in the range of 21 millionto 24 million tonnes based on the

normal rainfall predicted for thecoming season.Mr Lindberg said he was notworried that the single deskwould be part of World Trade Or-ganisation free trade nego-tiations.Australian farmers received nogovernment hand-outs from thesingle desk, which did not distortinternational trade.AWB shares closed 21c higheryesterday at $4.79.

St George on a mission to charmThe charm offensive by Aust-ralia’s banks continued yesterdayas St George Bank tried to proveto analysts it could increase rev-enue and improve service levelsamid signs of tougher conditionsfor Australian banks.Chief executive Gail Kelly saidthe bank had adopted a low-costplan to improve sales and serviceby giving frontline staff betterinformation about its customers,rewarding branch managerswith incentives, and taking stepsto improve cross-selling and re-tain more customers longer.‘‘It’s one of the key enablers ofour organic growth strategy,’’ shesaid, adding the plan involved anincremental cost of less than$10 million.

The spending is in stark con-trast to the $387 million theCommonwealth Bank has

already spent on its ‘‘customerservice transformation’’, thoughmuch of the cost is in redundan-cies, with the bank saying lastweek it was on track to exceedfirst-year planned benefits of$200 million.St George’s head of personalcustomers, Andrew Thorburn,said the bank was ‘‘different’’from the others because it alreadyhad a strong ‘‘service culture’’ andhad a ‘‘very practical’’ plan to im-prove sales and service.However, the market’s reactionwas subdued in part, analystssaid, because unlike Commbank,St George did not outline anydefinitive impact on revenue.St George shares fell 43c to$21.79. Some analysts alsoincreasingly believe that despiteMs Kelly’s commitment to organicgrowth, she will soon consider

a major banking acquisition.But at the moment, it’s all aboutbetter customer service in Aust-ralia’s banking sector.Elsewhere, ANZ is trying topreserve its New Zealand cus-tomers following its big acqui-sition there last year, Westpac’sDavid Morgan has his ‘‘Ask Once’’customer service strategy, whileminnow Bank of Queensland isbeing the most aggressive in ex-panding through branch open-ings, targeting 100 new branchesover the next two years.All this is in a tougher bankingenvironment. Credit Suisse FirstBoston yesterday told its clients toreduce their weighting to thebank sector amid risks of a creditslowdown. However, it rates StGeorge as the bank to outperformall others.Anthony Hughes

FOCUSBroker rappedMortgageChoicehasgivenASICanenforceableundertaking todrop theword ‘‘unbiased’’ in ad-vertising theprovisionof advice.ASIC found theclaimsweremis-leadinganddeceptive, given thatMortgageChoiceonly tells clientsabout a limitednumberof lendersfromwhom it takescommissions.AMortgageChoice spokesmansaid thecompanydidnotwant tomisleadcustomersandwashappytogive theundertaking.

Intellect sharesup 11%Shares in smart card providerIntellectHoldings rose 11pc to8.7c after the company said CEOJandeSmetwould leave by‘‘mutual agreement’’. The stockhad lost two-thirds of itsmarketvalue over the pastmonth afteradmitting it would needmorecapital to survive.

Palandri to list inUKWAwine groupPalandri is aboutto list on the LondonStockExchange’sAlternative Invest-mentMarket. CEODarrel Jarvissaid Palandri had lodged a 10-daynotice and raised$4m,with afurther $7mpledged.

New insolvency firmHIH liquidator andPanPharma-ceuticals administratorTonyMcGrath is headinganew insol-vency firmcarved fromKPMGAustralia’s corporate recoveryteam.NineKPMGpartnersandabout 140staffwill formthenewfirm,McGrathNicol&Partners.

Sigma looks tobuyDrugmaker and distributorSigmahas signalled it will keepmaking small acquisitions as itforecast profit growth of20-25pc for 2004-05.Net profitwas $44.2m last time.

Final Dolbybid for LakeDolby Laboratories has launchedan unconditional 16c bid for theremaining shares in LakeTech-nologywith full board support.Dolby alreadyhas84.4pc.

In a 100-page explanatorymemorandum, released to inves-tors yesterday, Grant Samuel &Associates concluded that themerger was equitable and in thebest interests of investors in allthree Westfield entities.The reports says: ‘ ‘GrantSamuel believes that WestfieldHoldings shareholders, West-field Trust unit holders andfield Trust unit holders and

19 — THE AUSTRALIAN Friday April 23 2004 — 19

R

PUB:ED:1 2 3 4 Drop

2/12/95

256781525507598dmindmax

PROOF OK CORRECTION SIGNATURE:EDADPROD

3 2 1 0 1 2 3 4 5 6 7 845678

CMYK 1919

23-APR-200423-APR-2004 AUS

AUS

CMYK

+

+

+

+

EACAC

I N S I D E

Full house

THE only broker in Australia not

involved in the Westfield deal is

C.J.Weedon & Co in Launceston.

No wait, where’s Maccas?

— Margin Call, Page 20

The producersBHP Billiton yesterday posted

strong third-quarter production

numbers, allowing its shares to

weather an overall slump in

resources on the back of sharply

lower base metal prices.

— Page 21

Lion roarsMETRO-Goldwyn-Mayer shares

rose 12 per cent after reports

Japan’s Sony was negotiating to

buy the Hollywood film studio

controlled by Kirk Kerkorian for

as much as $6.8 billion.

— Page 22

Audit rotation

IN the middle of its woes,

National Australia Bank’s board

faces the immediate task of

appointing a new external

auditor from a field of three —

possibly two — candidates.

— Business Extra, Page 23

Perfect solutionTO non-specialists, one

computer system looks much

like another. To those who work

with IT issues at a deeper level,

computer systems can seem

more like a squabbling family,

with different outlooks and

priorities.— Business processmanagement report, Page 25

US72.79 -0.37

3441.90 - 2.80

The Dollar

All OrdinariesS N A P S H O T

3420.0

3433.3

3446.7

3460.0

Apr 22Apr 16

Low: 3435.60 High: 3455.50

Low: 72.64 High: 73.76

72.75

73.47

74.18

74.90

Apr 22Apr 16

CurrenciesTWI 62.6 steady

Yen 79.71 +0.17

Euro 0.6166 -0.0008

$NZ 1.1733 +0.0042

Rates10-year bond 5.86 -0.06

90-day bill 5.53 steady

CurrenciesTWI 62.6 steady

Yen 79.71 +0.17

Euro 0.6166 -0.0008

$NZ 1.1733 +0.0042

Rates10-year bond 5.86 -0.06

90-day bill 5.53 steady

The MarketsS&P/ASX 200 3435.9 -2.9

SPI 200 3443 -5

Nikkei 11980.1 +35.8

Hang Seng 12167.7 -59.6

NZSE502648.22 -0.55

The MarketsS&P/ASX 200 3435.9 -2.9

SPI 200 3443 -5

Nikkei 11980.1 +35.8

Hang Seng 12167.7 -59.6

NZSE502648.22 -0.55

Company DirectoryASX 26

BHP 21,26

CCA 22

Emperor 22

Hutchison 26

MacBank 22

NAB 23

Newcrest 21

News 19,23

Novus 21

Oil Search 21

OneSteel 22

Rio Tinto 21

Sims 21

Telstra 26

Westfield 19,23

West Amer 19,23

West Trust 19,23

Company DirectoryASX 26

BHP 21,26

CCA 22

Emperor 22

Hutchison 26

MacBank 22

NAB 23

Newcrest 21

News 19,23

Novus 21

Oil Search 21

OneSteel 22

Rio Tinto 21

Sims 21

Telstra 26

Westfield 19,23

West Amer 19,23

West Trust 19,23

Westf ield’s $22bn giantThe road ahead

for Aussie icons

Robert Gottliebsen

BOTH Frank Lowy and

Rupert Murdoch are in their

70s and, having built enor-

mous empires, are moving to

maximise their family worth

while making sure their chil-

dren inherit simplified struc-

tures that they can expand.

Whereas the Murdochs

believe that The News Corpor-

ation Ltd’s share price will be

maximised by being based in

the US, where media giants

are more highly rated than in

Australia, Lowy believes his

share price will be maximised

by being based in Australia,

where the Lowy family carries

a charisma that it does not

enjoy in New York.

By maximising their share

price, the families will be able

to raise equity capital on the

best terms.

While Westfield shares will

be based in Australia, Lowy

will save $140 million a year by

borrowing in the US up to the

value of its US assets, thus

providing a natural hedge.

Westfield will lock in the

bulk of its $12 billion debt at

the current low US rates fixed

for 71/2 years. It is a massive US

currency/interest rate play.

Apart from the capital and

growth advantages, both

Westfield and News have

structural difficulties that the

reorganisations overcome.

The current Westfield struc-

ture is both complex (there are

$80 million in savings by

centralising) and potentially

dangerous in the longer term.

Westfield Holdings owned

about 25 per cent of the Amer-

ican trust which it managed.

Although American interest

rates are lower than those in

Australia, the US trust was

sellingonayieldthatwashigher

thantheAustraliantrust.Andif

it kept expanding, then the US

trust would suck capital out of

the parent company if it wanted

to maintain its stake.

The Lowys believe there are

plenty of shopping centres to be

bought in the US at rates of

return that are very attractive

to Australians, particularly

given the high Australian dollar.

The Westfield Australia

structure carries a latent dan-

ger. Everyone in the property

industry saw how the AMP

empire was disembowelled

when it fell out of favour and

had to compete with operators

who offered to manage at a

lower price.

At the moment it is hard to

conceive that happening to

the Lowys, but they are

human and in the future prob-

lems may arise.

If the trusts they manage

Continued — Page 23

AIRLINES RAMP UP SAFETY AVIATION P29-30GATECRASHER TO THE POINTANOTHER CHILDCARE FLOAT MARKETPLACE P26

Business

Lowy and behold,

Frank sells a winEmily Pettafor● Analysis

‘What if we fail?We don’tcontemplate that’Frank LowyWestfield Holdings chairman

‘‘NO’’ is not a word that West-

field Holdings chairman Frank

Lowy hears often.

And he was characteristi-

cally confident at yesterday’s

announcement of the $22 bil-

lion merger.

Was there a Plan B if the

proposal was defeated?

‘‘What if we fail? We don’t

contemplate that,’’ Lowy

replied.

He said Westfield had can-

vassed the opinions of ‘‘many,

many people’’ on this deal.

‘‘We don’t just rely on our

opinion. Not one of our

advisers (there are 13) have

advised us that this is not a

win, win, win situation.’’

Citigroup analyst Simon

Scott asked Lowy: ‘‘Wouldn’t

you get most of the benefits

from merging Westfield Trust

and Westfield America and

leaving Westfield Holdings as

it is?’’Lowy said the company had

looked at all options and

decided the three-way merger

was the best. ‘‘This is all about

growth.’’Westfield said the merger

was necessary to open up capi-

tal markets and help bankroll

large portfolio acquisitions.

One analyst noted that

Westfield had not exactly had

difficulty raising capital in the

past. ‘‘I’m surprised you see

the need to restructure,’’ he

told Lowy.

The 73-year-old replied:

‘‘Looking around the world at

what’s going to be available, I

know we need a capital struc-

ture which is more or less what

we are trying to do now.’’

Westfield would transfer its

debt into US dollars, taking

advantage of cheaper debt.

Westfield will now start sell-

ing this deal to shareholders.

The property security fund

managers were not en-

amoured of last year’s rash of

consolidation — the dis-

appearance of three AMP

trusts cut their choices in a

competitive market.

This deal would see the

trusts which currently hold

the top two spots in the listed

property trust sector become

one. And the three vehicles

combined would make up 34

per cent of the index.

Westfield’s investors have to

decided whether that bulk will

deliver them buying power.

Greenspan hints of US rate rises keep the Aussie guessing

Blair Speedy● Currency

WISE WORDS

80

79

78

77

76

75

74

73

US¢

JAMF

Source: Bloomberg

$US last nightUS72.88¢

Alan Greenspan

THE Australian dollar was

again below US73c yesterday,

testing its lows for the year

after another round of com-

ments from US Federal

Reserve chairman Alan

Greenspan boosted specu-

lation of US rate hikes.

Speaking before the Joint

Economic Committee of the

US Senate yesterday, Dr

Greenspan said that while

inflation currently appeared

to be in check, the central

bank would not hesitate to lift

its rate target from a four-

decade low of 1 per cent if

needed.

‘‘The Federal funds rate

must rise at some point to

prevent pressures on price

inflation from eventually

emerging,’’ he said. ‘‘As yet, the

protracted period of monetary

accommodation has not fos-

tered an environment in which

broad-based inflation pressures

appear to be building.

‘‘But the Federal Reserve

recognises that sustained

prosperity requires the main-

tenance of price stability, and

will act, as necessary, to ensure

that outcome.’’

The comments followed Dr

Greenspan’s statement on

Wednesday to the Senate

Banking Committee, when he

said US companies were

regaining the power to raise

prices, and the threat of

deflation was ‘‘no longer an

issue’’ for the Fed.

The bond and currency mar-

kets took his remarks as fur-

ther confirmation that the

Fed was planing to raise inter-

est rates some time this year.

This was a negative for the

Australian dollar, which has

benefited from global investors

pouring money into Australian

bonds, chasing the higher

yields on offer because of the

Reserve Bank’s official interest

rate target of 5.25 per cent.

However, a higher Fed

Funds rate would reduce the

interest rate margin, and thus

lessen demand for Australian

dollars with which to buy our

bonds.

The currency hit a new five-

week low of US72.64c over-

night before rebounding

strongly to US73.76c. However,

it was unable to make further

gains in New York trade and

sank to slightly below US73c

by the time Australian mar-

kets opened.

Westpac chief currency

strategist Robert Rennie said

that while Dr Greenspan’s tes-

timony lacked a ‘‘smoking

gun’’ signal of imminent rate

hikes, it had put markets on

notice that US rates will need

to rise soon.

‘‘That has been instrumen-

tal in capping the Aussie,’’ Mr

Rennie said. ‘‘Higher interest

rates in the US narrowing the

very high yield differential

between Australia and the US

would tend to sap foreign

interest in the Aussie dollar.’’

Mr Rennie said the chances

of US rate rises would increase

as the year wore on, with the

August policy meeting a

strong possibility, as it was one

of the last opportunities the

Fed would have to adjust rates

before the presidential elec-

tion.

Marketplace — Page 26

Emily Pettafor● Property

The Deal➤ Westfield Trust unitholders get 0.28

Westfield Group stapled securities for

each unit

➤ Westfield America unitholders get 0.15

Westfield Group stapled securities for

each unit

➤ Westfield Holdings shareholders get 1

Westfield Group stapled security for each

share

Key Dates➤ Early June: Documents sent to

shareholders/unitholders

➤ Early July: Shareholder and unitholder

meetings

➤ Mid-July: First day of Westfield Group

trading on the ASX

Westfield Group➤ World's biggest retail property trust

➤ Eighth biggest company on the ASX

➤ $34 billion of property assets

➤ 123 shopping centres, with 19,500 stores

in Australia, New Zealand, the US and the

United Kingdom

Australia: 43%$14.6bn

UK: 6%£800m

US: 46%$US11.9bn

NZ: 5%$NZ1.9bn

Australia: 43%39 centres

UK: 4%7 centres

US: 47%66 centres

NZ: 6%11 centres

Retail outlets

Asset value

The current structure

The proposed structure

L-R: Steven, Frank and Peter Lowy yesterday

SHOPPING AROUND

INSIDE The advantages of the

proposed merger are so numerous

and substantial for the holders of

the three listed entities

that approval of the

scheme seems

assured

Bryan Frith- Page 23

FRANK Lowy yesterday

unveiled a $22 billion

merger of the three listed

Westfield vehicles to cre-

ate the world’s biggest

retail property landlord.

Westfield said it wanted to

merge the $7.9 billion devel-

oper and manager Westfield

Holdings with Westfield Trust

and Westfield America Trust,

forming a group with $34 bil-

lion in assets wrapped up in

123 shopping centres on three

continents.

Property security fund man-

agers — who own large chunks

of all three vehicles and would

be critical to June’s vote on the

proposal — were on Tuesday

critical of the rumoured

merger, saying there would

need to be ‘‘compelling rea-

sons’’ to change the status quo.

‘‘I would want to see some

structural benefit rather than

just big is better,’’ said one.

But yesterday, they said

they needed more time and

more information to decide

whether the implied pricing

for the trusts was fair.

Mr Lowy believes he has just

the reasons they are looking

for: Westfield needed to grow

so it could keep growing.

To play with the world’s

biggest property groups and

investors, Westfield needed ‘‘a

balance sheet larger than any

one of the existing Westfield

entities’’, he said.

He pointed to 2002’s acqui-

sition of the $10.5 billion

Rodamco North America port-

folio, which Westfield America

carved up with Simon Prop-

erty Group and The Rouse Co.

‘‘We couldn’t do it alone — it

was bigger than our com-

pany,’’ he said. ‘‘But if that

happened today (assuming the

merger was already approved),

we would be able to acquire it.’’

Asked whether the reduced

family holding — the Lowys

would hold 12 per cent, down

from 28 per cent — would make

Westfield a takeover target, he

said: ‘‘We can be driven by

control or we can be driven by

growth. Control for the sake of

control is not a psyche of ours.’’

But if anyone had asked him

whether he would sell down

his stake 25 years ago, ‘‘I would

have said no’’.

It is not the only change of

heart. Westfield had faced

pressure to internalise its

management for years, as

stapled securities (which have

a risk-taking corporation

stapled to a passive trust) like

Stockland, Mirvac and Centro

have charged ahead.

Last year Steven Lowy,

managing director of West-

field Trust and Mr Lowy’s

younger son, told a property

trust conference that any

investor who wished to staple

Westfield could simply get a

stapler, hold their three share

certificates, and do it.

But yesterday he said the

time had come for Westfield to

do the stapling itself.

‘‘It will create a capital plat-

form that matches our operat-

ing platform. This really is the

only way to get the size that

will match the global growth.’’

Analysts have questioned

the strategy of blending off-

shore and local assets in a

single vehicle, and most of the

existing stapled securities

(with the exception of new

entrant Multiplex Group)

have not gone offshore.

But Frank Lowy said: ‘‘You

can’t be everything to every-

body.’’

His eldest son, Peter Lowy,

managing director of West-

field America, added: ‘‘The

global property trust sector is

undergoing an evolution. We

are part of that.’’

Frank Lowy predicted that

Westfield’s US operations

would eventually be the larg-

est ‘‘simply because it’s the

home of shopping centres’’.

But the group had no plans

to take its head office offshore.

‘‘The base is here and there

is no intention to shift it.’’

And on rumours he may

have been considering retir-

ing: ‘‘Do I look like it?’’

http://www.dailytelegraph.com.au/

http://smh.com.au/

http://undergoinganevolution.we/


Rapid growth in the US particularly in the 1990s in particular had fuelled the ‘internationalisation’ of Westfield, and it was now more capable and prepared to export that international expertise to a new market – the United Kingdom. The Group had, of course, maintained a presence for some time in the United Kingdom, assessing opportunities, planning carefully and establishing relationships with companies such as Marks & Spencer and Debenhams, now both major and long-standing business partners.

Like all of Westfield’s international growth, the UK expansion is a story of patience. Westfield first established an office in the United Kingdom in the late 90s, but had been analysing prospects in continental Europe since the mid-1990s. In 1998, Peter Allen was appointed to the position of Chief of European Operations based in London, with the brief to develop a strategy to build an initial presence in the United Kingdom.

While Westfield was well established in Australia and was growing strongly in the United States and New Zealand, the Group was largely unknown in the United Kingdom, where it was perceived as ‘the new kid in town’. In 1999, Westfield had identified a number of investment prospects, one in which it was particularly interested – the establishment of a joint venture with Hermes, a highly-regarded asset and pension fund manager with more than $40 billion in assets under management.

But Westfield wasn’t the only interested party. Also circling were two established UK property companies, and the Australian Lend Lease, which had recently made its mark in the UK market following the successful completion of Bluewater, a major regional centre in Kent. As Hermes was looking not only for a buyer but a joint venture partner to manage the asset, Westfield faced a challenge to

in the UK, opportunity Knocks

demonstrate its credentials to Hermes in a short space of time.

Westfield went about this in typical fashion, quickly gathering in the United Kingdom its most senior and experienced managers across all disciplines in the business – leasing, management, construction and design. Steven Lowy led a team that included senior executives from Australia and Richard Green from the United States, who all joined Peter Allen and the local team to demonstrate the Group’s expertise.

As part of this process a dinner was organised for Steven Lowy to meet the Chairman of Hermes, Richard Harold, and a senior executive. Richard Harold was a wine buff. Knowing this, Peter Allen chose a fashionable London restaurant and proceeded to order two bottles of prized 1990 Penfolds Grange. Steven thought it unnecessarily extravagant, and after the guests left, suggested Peter would have to pay for it himself if Westfield was unable to transact with Hermes.

The dinner was certainly a success, with Hermes announcing in January 2000 that Westfield had made a short list of retail property companies to work with Hermes to become a joint venture partner and develop Nottingham’s Broadmarsh centre. In February, Westfield was announced the successful partner, and the company was on its way in the United Kingdom. Allen did not have to pay for the Grange.

By the close of the decade Westfield owned eight centres, including two of the company’s most ambitious new developments: Westfield London, in west London, and Westfield Stratford City, adjacent to the site of the London 2012 Olympic Games. Just 10 kilometres apart, both sites were set to be a beacon for the Westfield brand worldwide.

2000–2009 A Global Structure for a Global Company 121

Right: Westfield London during construction in 2008.

Below: Westfield London on completion in October 2008 – the largest urban shopping centre in the United Kingdom.

Westfield’s significant Olympic journey began at the start of this decade – the Sydney 2000 Olympics and Paralympics, where it was a proud major sponsor and supporter. Its decision to support the world’s biggest sporting event was a major vote of confidence in its home city, and it has continued to support Olympic and Paralympic athletes through subsequent campaigns.

Through its involvement in the $2.6 billion (£1.45 billion) Stratford City project, Westfield is playing an integral part in the London Games of 2012. The Stratford City development, which opens in 2011, will act as the gateway for the Games, with 70 per cent of patrons attending the Games each day anticipated to pass through the centre. At the same time, it is re-energising London’s East End.

British Prime Minister Gordon Brown said:

‘Development in and around the Olympic Park site will bring real benefits to the people of east London, transforming the local area and bringing billions of pounds of private investment into one of the most disadvantaged parts of the UK. Regeneration was at the heart of our bid for the 2012 Olympic and Paralympic Games, so I welcome the excellent progress being made on the Stratford City development.’

Westfield’s chairman Frank Lowy described the project as ‘a beacon for the Westfield brand worldwide, at a major transport hub of the UK and continental Europe’, that would complement the Group’s other major centre in the United Kingdom, Westfield London.

Westfield starts the second decade of the century where it began the first – deeply involved in the world’s biggest sporting event.

Westfield and the olympics

Left: Frank Lowy presenting Stratford City plans to British Prime Minister Gordon Brown in June 2008.


Below: Westfield Stratford City under construction in 2010 – with the Olympic Stadium and Aquatic Centre visible at top left.


In the decade leading up to the development of Westfield London and Westfield Stratford City as landmark retail destinations, the Group was involved in a raft of strategic transactions that delivered significant scale to its UK business. Late in 2000, the company entered into a joint venture with MEPC to purchase nine shopping centres in their existing portfolio for £930 million ($2.4 billion). Their location, in prime town centre and urban locations, would provide a blueprint for Westfield’s expansion in the United Kingdom.

A defining strategic UK transaction for the decade was made in 2004, when Westfield joined with Australian-based Multiplex and companies associated with David and Simon Reuben to acquire Duelguide plc (which owned the former London-listed Chelsfield plc) for $1.4 billion. The assets of the Chelsfield Group were then divided between the acquiring parties.

The Westfield component comprised a high-quality shopping centre portfolio of more than half a million square metres of lettable area, including Merry Hill, a super-regional centre near Birmingham, the United Kingdom’s second largest urban area. The two jewels in the portfolio were a 25 per cent interest in White City, then under construction (an additional 25 per cent was purchased from its partners a year later); and 25 per cent of Stratford City, a long term mixed-use development site including a proposed 187 000 square metre super-regional shopping and leisure centre development in east London.

The investment increased Westfield’s UK portfolio from seven centres to nine centres plus four retail development

RICHMOND

KINGSTONUPON

THAMES

HOUNSLOW

HEATHROWAIRPORT

BARNES

KEW

CHESWICK

PUTNEY

FULHAM

CHELSEA

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CLAPHAM

BRIXTON

CAMBERWELL

PECKHAM

STREATHAM

FINSBURY

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HACKNEY

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2KM

Left: Royal Victoria Place, Tunbridge Wells, 2003.


RICHMOND

KINGSTONUPON

THAMES

HOUNSLOW

HEATHROWAIRPORT

BARNES

KEW

CHESWICK

PUTNEY

FULHAM

CHELSEA

BATTERSEA

CLAPHAM

BRIXTON

CAMBERWELL

PECKHAM

STREATHAM

FINSBURY

CANARYWHARF

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BOW

ISLE OFDOGS

STOKENEWINGTON

LAMBETH

SHOREDITCH

BETHNALGREEN

PENTONVILLEHARLSDEN

WILLESDEN

NORTHACTION

WEMBLEY

KENTON

FENCHLEY

HENDON

WOODGREEN

TOTTENHAM

HARROW

STANMORE

GREENFORD

EALING

SOUTHALL

HAYES

HILLINGDON

NORTHOLT

REGENTSPARK

PADDINGTON

KNIGHTSBRIDGE

WESTBOURNEGROVE

SHEPHERDS BUSH

HAMMERSMITH

KENSINGTONHOLLAND

PARK

NOTTINGHILL

MAYFAIR

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sites, and Westfield’s UK investment from $2.3 billion to $5.3 billion, plus the value of the additional development opportunities of the enlarged portfolio. Such a move inevitably attracted the attention of the City’s business media, and the company was dubbed the ‘New Wizard of Oz’. Property Week magazine published an article headlined ‘Westfield comes to conquer the UK’ and questioned the price Westfield and its partners had paid. Lowy dismissed the criticism: ‘People can say what they like. So what? We believe we have paid for value. I am very excited about the opportunity. We are buying some very good centres.’

Freehold to the 170 acre Stratford City site was held by London & Continental Railways (LCR), and it had appointed a consortium of developers to bring the site to life. Its value had increased dramatically since the

announcement in 2005 that London would host the 2012 Olympic Games, and that the site would be a major part of the infrastructure. Not only had the value of the site increased, but so had the sense of urgency, with the Olympics deadline requiring a fast unravelling of Stratford’s complicated ownership structure and development rights.

David and Simon Reuben, reportedly among Britain’s 10 richest people, were part of that complicated ownership structure. Lowy had demonstrated over a long career that he was prepared to pay a premium to establish a strong foothold in an identified market if he believed Westfield could add value. He had traded very large property assets with some of the world’s leading businessmen over his 50-year career and had witnessed plenty of unorthodox tactics. But he had certainly never before seen a negotiation like that with the Reuben brothers.


Left: CastleCourt, Belfast, 2003.

Ultimately, the parties agreed to resolve the ownership and development rights through a ‘shoot-out’ – effectively an auction allowing each of the three parties equal opportunity to bid – but then couldn’t agree the conditions. What was already a difficult transaction was exacerbated by the high profile nature of Stratford, with its proximity to the Olympics site. LCR threatened to rescind the development rights and appoint a new consortium. In the end Westfield got the resolution it was after – it bought out the Reuben brothers and the other shareholder, Stanhope.

In December 2006 Westfield moved to strengthen its relationship with other investors in the UK market by announcing a £524 million ($1.36 billion) joint venture with QIC (formerly Queensland Investment Corporation) for Merry Hill. In July of the following year, the Group established a £530 million ($1.25 billion) wholesale fund to own interests in four Westfield shopping centres in the United Kingdom. The Westfield UK Shopping Centre Fund initially held 25 per cent interests in Westfield Merry Hill, Belfast, Tunbridge Wells and Derby, with Westfield retaining a 25 per cent interest in the properties. Westfield would act as fund manager and would continue to act as property, leasing and development manager for each of the centres.

In October 2007, six months ahead of schedule, the long-awaited Westfield Derby opened, the largest retail-led development to open in the United Kingdom that year. Westfield had acquired its 50 per cent interest in the centre from MEPC, with whom it had entered into a joint venture partnership in 2000. In 2002 outline planning consent was awarded to Westfield and new joint venture partner Hermes, followed in September 2003 by a further planning consent to enlarge the scheme. Works commenced in January 2005 and lasted 34 months to completion.

The Derby project showcased in so many ways a

subtle evolution in the Westfield approach – helping to rebuild and revitalize cities through the establishment of creative, innovative, secure shopping centres offering an exciting blend of retail and lifestyle products and services. Westfield’s UK/Europe Managing Director Michael Gutman was clear: “City regeneration is at the heart of our business in the UK today.”

Of longer-term significance to Westfield, Derby was the Group’s first UK development to be anchored by Marks & Spencer, one of the United Kingdom’s oldest, most progressive and respected retailers. The two organisations had worked closely for a number of years – and at the time of the opening of Westfield Derby, Marks & Spencer announced it was working with Westfield on three future developments in Nottingham, Stratford and Bradford. Marks & Spencer was now a key retailer at seven out of 10 Westfield centres in the United Kingdom.

The Group’s next project in the United Kingdom was Westfield London. Opening on 30 October 2008, the new centre was 99 per cent leased, and generated some 23 million visits in its first year of operation. Since opening, many major retailers have recorded sales levels that put their Westfield London store among the best performing of their portfolios.

Westfield Stratford City and Westfield London are expected to become the highest grossing regional malls in the United Kingdom. In many ways, Westfield’s steady progress in the United Kingdom in the first decade of the 21st century is just another chapter in the story of the way it has expanded over 50 years: building familiarisation with local conditions and markets; establishing knowledge and contacts; patiently exploring all investment opportunities until the right one comes along; and then planning diligently and executing boldly.

Certainly, by the close of the decade, Westfield was no longer the ‘new kid on the block’ in the United Kingdom.


Right: Westfield Derby during opening week.

Below: Westfield Derby on its completion in 2007.


Early in the decade, Frank Lowy refined the message about Westfield’s approach: ‘We have a clear strategy to own the best centres in the best markets.’ It underscored a driving force within the organisation – to own the best quality shopping centre portfolio in the world, located in the best markets.

Put simply, the Group’s focus is on the ownership and development of high-quality retail assets where it sees the greatest opportunity to maximise shareholder returns over the long-term.

Whether these assets are acquired from third parties or developed by the Group as part of its extensive program of continuous expansion and upgrading of assets, the objective of owning the best centres in the best markets is a core philosophy of the Group. Of course, this also entails disposing of assets that no longer meet the Group’s criteria.

Importantly, the strategy does not embrace the idea of growth for growth’s sake. Westfield is more concerned about the return generated on capital invested than it is on the number of shopping centres it owns.

Having high-quality assets is always important, given these produce strong income streams and superior capital growth, but it becomes a critical factor during volatile times when lower quality properties are more vulnerable to economic downturns.

A second feature of Westfield’s business has been that these assets are geographically diverse. In the last three years of the decade, the Group’s spread of centres across Australia, New Zealand, the United States and the United Kingdom provided a natural buffer against the varying impacts on each market of the global financial crisis . For example, the resilience of retail sales in Australia and the

continuing strong performance of Australian centres at that time offset the weaker performance of the US and UK markets, meaning the Westfield Group overall achieved creditable results compared with many of its peers.

In addition to the quality of the centres and their geographic diversity, there is also a great diversity of retailers – almost 24 000 retailers in the Westfield portfolio across all categories including fashion, food, entertainment, homewares and department stores – cushioning the impact of short-term fluctuations in consumer demand and tastes. And, given that the overwhelming majority of retailers in Westfield centres are themselves strong performers and market leaders, they are generally better placed to manage the difficult times.

A third feature of the Westfield business is its strong and stable cash flows which are based on long-term leases with retailers. These leases range from five to seven years in Australia and New Zealand; eight to 10 years in the United States and generally 10 years in the United Kingdom. More than 98 per cent of the Group’s rental income comes from contracted minimum base rents that are not affected by short-term movements in retail sales.

This powerful combination of a high-quality portfolio with diversity both in terms of markets and retailers has served the Group well. When combined with long-term lease arrangements and a culture of ‘intensive management’ of every aspect of the centres in order to ensure that the assets are performing at full potential, it is not surprising that the Group has established a reputation for value creation, stable cash flows and sound operating management.

The first decade of the 21st century saw all these elements in play.

Best Centres in the Best Markets


Above: Westfield Topanga, LA, after a major redevelopment in 2007.


In 2000, Westfield Trust acquired St Lukes Group in New Zealand, a portfolio of 10 centres it had already managed for two years, creating the largest shopping centre owner and manager in that country.

Westfield’s first significant US transaction for the decade was the acquisition of a 23.9 per cent interest in Rodamco North America in August 2001, which owned 41 centres around the country. It was a strategic acquisition designed to create the premier US shopping centre portfolio by leveraging Westfield’s unique skills in management, leasing, revenue and capital initiatives to design a long-term redevelopment program to maximise the portfolio’s potential.

Soon after, Westfield found itself directly involved in one of the most dramatic events in world history. Just a few months before terrorists attacked the World Trade Center towers in New York on 11 September 2001, Westfield had entered into an agreement to lease the retail component of the Twin Towers for 99 years and had taken over the management, leasing and development of the space. When the attacks came, Westfield had 10 staff working in the building and, sadly, one executive lost his life. Bruce Eagleson had returned to the building after the first plane hit to help rescue survivors, only to become one of the many victims of that day. Ultimately, Westfield sold its interest back to the Port Authority of New York to help simplify the rebuilding process but retained the opportunity to become involved again in the retail component of the rebuilt site in future.

In the first half of 2002, Westfield entered into transactions with Richard E. Jacobs to purchase nine centres, and concluded the Rodamco North America transaction to purchase 14 centres. The two transactions increased the number of clusters of Westfield centres from six to 11, providing greater branding and leasing opportunities, and giving a more even spread of properties between the West Coast, Mid West and East Coast.

One irresistible prospect during this period was the AMP Retail Trust (ART), which owned nine prime shopping

centres in Australia. To complicate matters, AMP was a long-standing partner of Westfield – a long-term investor in the Westfield Group and a partner in a number of shopping centres – as well as a competitor. The ART transaction came into play on 17 March 2003, when the Centro Property Trust acquired 19.9 per cent of ART and the next day announced a bid to acquire ART at a price of $1.63 a share. Steven Lowy could not see the circumstance where Westfield would have initiated a takeover of ART, but with the business in play and the action taking place less than one kilometre from Westfield’s head office, the company’s involvement was inevitable. ‘Once Centro started the game, there was no way we weren’t going to make an offer,’ he said.

Three days later, the Westfield Board gave approval for Westfield to acquire 16.9 per cent of ART at a price of $1.80. By 20 May, the ART transaction was playing out, with Westfield successfully acquiring significant interest in the ART properties. The boldness and speed with which the Group acquired its initial stake ultimately led to its acquisition of this high-quality portfolio of shopping centres.

Varying levels of interest were retained in all but one of the properties in the portfolio, leaving the Group with part-ownership of eight new high-quality centres across four states.

The performance of those centres under the Group’s management since acquisition has more than justified the decisions taken at that time and have enhanced the Group’s hard-won reputation for creating value through acquisitions.

During the same period in Australia, Westfield acquired additional centres, including key sites on the country’s most high profile retail strip: Skygarden and Imperial Arcade in Sydney’s Pitt St Mall. These acquisitions would, toward the end of the decade, facilitate commencement of a major redevelopment in the Sydney CBD – a development that is certain to create one of Australia’s finest retail precincts.

A dynamic Portfolio


In 2005, Westfield was again in acquisition mode in its home market, purchasing interest in two centres from General Property Trust (GPT) in another high-profile transaction.

GPT and its manager, Lend Lease, had proposed a merger in mid-2004, which would see Australia’s oldest property trust (GPT) merge with Lend Lease to become the second-largest listed property trust in the country after Westfield. It took some months for details of the proposal to be agreed on by their respective boards, and during this time Westfield went about acquiring a strategic holding in GPT.

When the Lend Lease merger proposal failed to attract the necessary support from GPT’s major investors, Westfield worked with GPT management, who proposed

a transaction that internalised management of GPT’s assets and raised capital for further expansion through asset sales to Westfield.

Westfield acquired a 50 per cent interest in two key centres in Sydney and Canberra, as well as management rights over those centres. The transaction again demonstrated Westfield’s willingness to act decisively in acquiring a strategic position in GPT when the final commercial outcome was far from clear at the time the initial stake was acquired. That position ultimately conferred significant leverage on Westfield as the GPT transaction took its course. It took time, but the benefits reaped by the Group’s investors from this transaction were significant.

In the United States, too, the company was continuing

Right: New York’s World Trade Center before disaster struck in 2001. Westfield had acquired the retail site beneath the Twin Towers just months before the tragedy of September 11.


to broaden and deepen its operations, acquiring centres in New York, Florida and Illinois and engaging in an extensive redevelopment program including opening the newly expanded flagship centre at Century City in Los Angeles.

At the same time, and consistent with its philosophy to exercise financial discipline and recycle capital, Westfield also took the opportunity to sell assets that did not meet the ‘best centres, best markets’ criteria to buyers who believed they could add more value.

A transaction with Federated Department Stores, although comparatively small in dollar terms, was strategically significant. Unlike the other markets in which Westfield operates, department store sites in the United States are not usually owned by the shopping centre owner, but by the retailers themselves. In effect this means that the property owner has limited influence over the site in terms of its future development. In 2006, Westfield announced it had purchased 15 Federated Department Store sites at 11 Westfield shopping centres in the United States, enabling the Group to have more control over the sites when it came to future projects.

In the mid and latter part of the decade, the importance of Westfield’s redevelopment program was again underscored.

Redevelopment is a fundamental part of Westfield’s DNA – it has always recognised the need for and benefited from constant improvement of its centres to provide the most compelling retail environment. Intensive asset management drives the redevelopment program. In many cases, redevelopment of existing shopping centres generates a better return on the capital invested than would necessarily come from the acquisition of new centres.

The second half of the decade set a new standard for the quantity and quality of the company’s redevelopment work. In 2006 for example, 12 redevelopment projects were successfully delivered, including San Francisco Centre, Century City and Topanga in Los Angeles, Chermside in Brisbane and Liverpool and Parramatta in Sydney. About $2 billion in total development work was undertaken, delivering significant investment returns. At year end, there were 15 projects underway at a forecast investment of $6.6 billion, with the Group’s share being

Left: Westfield Century City, Los Angeles, after a major redevelopment in 2005.

Right: Galleria at Roseville, California, after a major redevelopment in 2009.

Far right: Westfield Parramatta, Sydney, after a major redevelopment in 2006.


Right: Westfield Derby, the Group’s first branded centre in the UK, after a major redevelopment in 2007.

Below: Westfield Southcenter near Seattle, after a major redevelopment was completed in 2008.

Above: Westfield Annapolis in Maryland, USA – one of five projects the Group opened in just four weeks across four different countries.

Right: Westfield Albany in New Zealand after a major redevelopment in 2007.


$4.6 billion. This included $1.5 billion of developments commenced during 2006.

The following year a new benchmark was achieved – the opening of five major development projects with an aggregate cost of $1.5 billion across four countries in four weeks.

The Westfield Group successfully completed and opened:

• The £340 ($700) million redevelopment of Derby in the UK, on 9 October;

• The $170 million redevelopment of Kotara in Newcastle on 18 October and the $190 million expansion at North Lakes in Brisbane on 25 October;

• The US$160 ($230) million redevelopment of Annapolis in Maryland on 1 November; and

• In New Zealand, the NZ$210 ($180) million development of a new centre at Albany on Auckland’s North Shore, which also opened on 1 November.

To Steven Lowy, this underscored a major competitive strength: ‘The delivery of these major projects highlights the global capabilities of the Group,’ he said. ‘It reflects the expertise and depth of the Group’s team with the unprecedented delivery of five major projects across four countries in a four week period.’

Above: The most recent incarnation of Australia’s first shopping centre - Chermside in Brisbane, 2007.

After their completion, the Group still had $5.6 billion of redevelopment projects underway, and by the end of the decade would complete projects in all four of its operating markets.

The completion of the Westfield Doncaster project in 2008 was particularly pleasing for the Group as it had a special place in its history. It was the first centre Westfield had built in Melbourne – at the time set amidst apple orchards and farms. The redevelopment more than doubled the size of the centre and now served a high-income population with a variety of retailers and specialty food stores that was unimaginable when the site opened 40 years earlier.

During 2008, nine major developments were completed at an aggregate project cost of $5.6 billion. Seven major projects were under construction at a forecast investment of $4.7 billion, including Stratford in the UK, due for completion in 2011, and Sydney City, to be completed about a year later.

As the end of the decade approached, and the effects of the global financial crisis took hold, the Group again demonstrated its ability to respond quickly to market conditions by slowing its redevelopment activity and reducing expenses in all areas of the business.

The United States mall industry has undergone enormous change since Westfield’s entrance in 1977 when it purchased Trumbull Shopping Park in Connecticut. The industry has moved from being characterised by smaller private companies to being dominated by large public companies. Another major change in the industry has been the transformation of mall companies from being essentially regional to national. This trend occurred during the consolidation period of the public and private mall companies. Until the listing of the Taubman Company in 1993, shopping malls in the United States were primarily owned by private family companies or the major department stores themselves. One of the only public companies was the Rouse Company. Of the 1500 regional malls in the country, no one company had a dominant position.

Financial pressures prompted a number of these private companies to go public in 1993 and 1994. Westfield took advantage of this and made a major mark on the industry in 1994 with the purchase of the CenterMark properties for approximately US$1 billion, and again in 1998 with the US$1.4 billion TrizecHahn portfolio. Prior to these transactions, Westfield had made an impression on the US industry with its US$364 million purchase of the Macy properties in 1986.

Early in the decade, Westfield seized the chance to quickly build scale, and was involved in what Peter Lowy described as ‘company-transforming’ transactions.

In August 2001 Westfield purchased a 23.9 per cent interest in Rodamco North America, which owned 41 centres around the country. Westfield, Rodamco and ABP, Rodamco’s largest shareholder, were well known to each other. ABP had been a large investor in Australian-listed Westfield Trust and Rodamco had been a partner in Westfield-managed centres in Australia, the US and Asia since the early 1990s. Frank Lowy was thrilled: ‘This acquisition provides the potential to create one of the premier US shopping centre portfolios.’ Just 10 months later, the parties entered into agreement for Westfield to acquire 14 centres from Rodamco.

The acquisition of the assets from Rodamco followed quickly on the heels of Westfield’s second major transaction of the decade in April 2002, when Westfield purchased nine regional shopping centres from The Richard E. Jacobs Group, a $1.45 billion acquisition that, together with the Rodamco purchase, brought the Group’s US portfolio to 61 shopping centres in 14 states with nearly six million square metres of retail space. The quality and location of the centres complemented Westfield’s existing US portfolio – three of the centres created a new cluster in Ohio and another two added to existing Westfield centres in Missouri and Washington.

Thirty-three years after first entering the US, Westfield had become one of the largest shopping centre companies in the world and was acknowledged as one of the leaders in the US shopping mall industry.

Building Scale in the World’s Biggest Market

Opposite: Westfield’s portfolio growth in the United States 1997–2009.


LOS ANGELES

MARYLAND

MISSOURICOLORADO

WASHINGTON

CALIFORNIA

FLORIDA

NTH CAROLINA

CONNECTICUT

NEW JERSEY

MARYLAND

ILLINOIS

OHIO

NEBRASKA

WASHINGTON

INDIANA

NEW YORK

NEW YORK

CONNECTICUT

SAN DIEGO

LOS ANGELES

MARYLAND

MISSOURICOLORADO

WASHINGTON

CALIFORNIA

FLORIDA

NTH CAROLINA

CONNECTICUT

NEW JERSEY

MARYLAND

ILLINOIS

OHIO

NEBRASKA

WASHINGTON

INDIANA

NEW YORK

NEW YORK

CONNECTICUT

SAN DIEGO

Westfield centres in the in the United States, december 1997.

Westfield centres in the United States just over one decade later, december 2009.


Total centres: 25

Total centres: 55

A hallmark of Westfield has been its financial discipline and careful attention to maintaining a strong balance sheet. Its consistent objective has always been the most efficient use of available capital.

The most obvious recent example of this was through active portfolio management – buying, selling and redeveloping centres – and, increasingly over the past decade, through a range of capital management initiatives.

In the years leading up to the global financial crisis these were examples of what the company did in a proactive way to maintain a strong balance sheet. But during the same period, its financial discipline was evident in what it didn’t do. At the time, many companies were acquiring assets and gearing themselves heavily to do so. Westfield was often accused of being too conservative in not taking advantage of the available asset sales or using new and fashionable financial engineering methods. The company countered this view, arguing that asset prices were unrealistic and unsustainable regardless of whether sales were funded through traditional means or the more creative business models being proposed.

This discipline was put to the test when an opportunity emerged to bid for the Rouse portfolio in 2004. Westfield

had long been interested in the Rouse’s high-quality portfolio, which included a number of flagship centres in the United States as well as some commercial and office buildings.

Westfield had previously worked with Rouse in acquiring centres from TrizecHahn in 1998 and Rodamco in 2002. These transactions resulted in Westfield having a strong working relationship with existing management and significant familiarity with a number of their assets.

While Westfield knew the portfolio intimately, it entered into even more rigorous examination of each Rouse asset to determine its potential value to Westfield. After months of detailed work, Westfield formed the view that although the Rouse portfolio was tantalisingly attractive, the price was just too high. The returns Westfield judged it could generate from the Rouse assets were below the cost of capital required to make the transaction profitable. The risk was judged to be too high, with the added complication that the portfolio included a significant number of non-retail assets outside of Westfield’s core business.

Ultimately, and somewhat reluctantly, Westfield pulled out of the race for Rouse because it believed it would not create value for shareholders.

Sometimes it’s Not What you do, But What you Don’t do

Opposite: Two of the flagship centres in the Rouse portfolio Westfield didn’t acquire. Above: Fashion Square Mall on Las Vegas Boulevard, Las Vegas. Below: Water Tower Place on the Magnificent Mile in Chicago.



‘It’s too late to plan for difficult times when they’ve already arrived,’ Westfield Group Chairman Frank Lowy told shareholders at the 2008 Annual General Meeting. He was speaking as the world was reeling from the biggest financial shock since the Great Depression of the 1930s.

Collaterised debt obligations, sub-prime mortgages and complex new financial instruments had helped drive unprecedented global corporate and consumer borrowing and a decade of historically strong consumer spending. This was for many the first time the term ‘Sub-Prime Crisis’ was heard, the term which in due course morphed into ‘global financial crisis ’ in the wake of the spectacular collapse of New York’s Lehman Brothers in September 2008. Lehman Brothers had been a major player in the global financial services industry for more than 100 years.

Globally, the reaction to Lehman’s demise, resulting as it did in the imminent collapse of the entire financial system, led governments to take unprecedented action. In the United States and United Kingdom, it meant bailing out banks, insurers and large companies judged too important to fail.

These included such institutions as AIG, the largest insurance company in the world, which was propped up by a $120 billion capital injection. By the time the storm started to calm, General Motors was owned by American taxpayers. In the United Kingdom, Treasury was forced to invest £700 billion to save key banks, including the venerable Lloyd’s TSB and Royal Bank of Scotland.

In Australia, with its tough compliance and regulatory regime, the Government was forced to guarantee bank deposits, but its banking system and economy proved robust.

By the time Lowy addressed shareholders in May 2008 the full impact of the crisis was still being assessed and the future uncertain, but Lowy explained how long-term planning and financial discipline would help Westfield weather the storm.

‘I’ve seen all this before,’ he said. ‘I have been around for a while, as you know, but it’s because I and many of my colleagues have been around for a while, and because we’ve seen all this before, that I am able to report to you that Westfield Group remains strong and stable.

‘Our stability is built on three things – high-quality assets with stable cash flows; financial strength and discipline; and, experienced management, which plans for the long-term. This point of planning for the long term is very important, and very pertinent to reflect on now at a time when markets are unpredictable.’

In the months after the financial crisis hit many commentators remarked on Westfield’s apparently canny judgment. With hindsight, it appeared that Westfield had anticipated precisely the timing and scale of the crisis and put in place the necessary defensive measures.

In truth, it wasn’t so much a case of canny judgment as ‘business as usual’ in the execution of Westfield’s traditionally disciplined and prudent financial approach.

During 2006, 2007 and into 2008 Westfield had consistently taken the view that the good times of cheap, easily available capital that led to unrealistic asset prices, would not last forever. During this period, while many companies were rapidly acquiring properties, Westfield adopted a conservative stance, which led some analysts and commentators to question Westfield’s entrepreneurial credentials.

Weathering the Storm

The Global Financial Crisis


But instead of joining the buying spree, the Group recycled capital. It raised $10.5 billion of equity through asset sales, joint ventures and the issue of equity between 2005 and 2007. It sold 14 shopping centres that no longer met the Group’s criteria of owning the ‘best centres in the best markets’. A wholesale fund was created in the United Kingdom. It raised long-term debt and issued common equity including $3 billion raised through an institutional placement in 2006.

Having taken these steps, it entered the crisis in a strong financial position, and as a consequence was able to extend banking maturities during the crisis.

It further protected its position by reducing capital expenditure, including postponing most of its redevelopment work, and reduced expenses across the business.

All this meant Westfield was able to maintain its strong balance sheet – with around $8–10 billion in available liquidity and gearing at around 35 per cent. At an operational level, it continued to record relatively sound results.

But it was not immune from the effects of the crisis, and notwithstanding the relatively sound operating performance and strong balance sheet Westfield’s share price suffered.

‘When share markets collapse on such a scale, they do not discriminate. Solid companies with good prospects are punished along with companies that are overburdened with debt or badly managed. No company was immune from this downturn,’ Frank Lowy said.

In light of the global economic environment, retail sales results in Westfield centres around the world contained

some interesting pointers to relative economic conditions.Australian retail sales during 2008 were solid, up 3.7

per cent; New Zealand was down 1.2 per cent; and US specialty store sales were down 6.8 per cent. In the United Kingdom retail sales in London grew 3.8 per cent but fell 0.7 per cent nationally. Australia’s solid economic performance was offsetting challenging conditions in all other markets.

A little over a year later, Frank Lowy was able to write confidently to shareholders:

‘Over 50 years we have confronted several downturns and have emerged from each in a stronger position than we entered it. The credit squeeze of the early ’60s; the oil shock and inflation of the ’70s; the boom and bust of the ’80s and the deep recession of the early ’90s. Then came the Asian financial crisis of 1997; the dot-com boom and bust and then the most recent financial crisis.

‘Each episode had different characteristics and each taught us lessons about how to deal with the adversity that any long-term business must inevitably confront. Perhaps the most enduring lesson has been the importance of a resilient business model – in Westfield’s case based on stable income flows made possible by a portfolio diversified by geography and type of retailer.’

Westfield had indeed emerged from the crisis in a strong position, and as the Group entered 2010 there was cautious optimism that it could begin to plan for more promising times ahead.


Naturally, the shopping centres of the 21st century look very different to their predecessors. In the early years of Westfield, urban design of public buildings was not what it is today. Now, the Group builds and manages flagship centres from the heart of Sydney to Los Angeles, San Francisco and London, and Westfield has led the way in the transformation of shopping centres from utilitarian buildings to shopping and entertainment destinations that rival the best commercial properties anywhere.

The Group’s global portfolio includes a number of powerhouse centres, which generate significant retail sales within their given markets and are often the largest of their kind within a region. These centres include Parramatta and Miranda in Sydney – both of which enjoyed their status as the largest shopping centre in the southern hemisphere at different stages – and Garden State Plaza in New Jersey and Valley Fair in California.

The later manifestation of Westfield deliberately ‘raising the bar’ in shopping centre design, quality of finish and

retail offer, was its Bondi Junction centre in Sydney. Its trade area included some of Australia’s highest income suburbs, and there was obvious pent-up demand for a retail centre to match the high expectations of the community.

Located in Sydney’s eastern suburbs with a population of 260 000 and a per capita income 40 per cent higher than the Sydney average, Bondi Junction is also the major public transport hub for the eastern suburbs with an upgraded rail and bus interchange bringing 75 000 commuters to the area each day.

When the redeveloped Bondi Junction opened in 2004, it exceeded the expectations of retailers and shoppers. Its design and amenities were of the highest standard, new ‘five-star’ customer service programs were introduced, fine dining and new concept casual dining combined with a range of luxury retailers not seen before in a shopping centre environment set a new benchmark in the industry. Westfield’s first flagship centre had arrived.

flagship Centres

Right: Westfield Doncaster after a major redevelopment in 2008.


The ideas and lessons learned at Bondi Junction were soon shared across the Group, and introduced in various forms at subsequent flagship developments – at Century City in Los Angeles, at the San Francisco Centre, at Westfield London and Stratford City in the United Kingdom and most recently in the current redevelopment of Westfield Sydney, in the heart of the Group’s hometown central business district.

The history of the Westfield Sydney project is a typical Westfield story, involving commercial acumen, patience, good planning and bold execution. And the ultimate aim is to create a world-class retail, office and entertainment precinct that ‘raises the bar’ yet again for the Westfield flagship centres.

In December 2001, Westfield acquired the iconic Sydney Tower and Centrepoint, and in 2003, it purchased the adjacent Sydney Central Plaza, Skygarden and Imperial Arcade sites from separate vendors in three separate transactions. This allowed Westfield to consolidate the prime CBD retail area fronted by Pitt Street Mall, Castlereagh Street and Market Street.

Such a large and complex project, undertaken in the heart of such a busy downtown location, called for exhaustive planning and negotiation with relevant authorities and the local business and residential communities.

An international design competition was held to select the best architectural scheme for the complex, which would integrate several retail sites and three commercial office buildings including a tower to be built as part of the project. Negotiations began with some of the world’s leading retailers, including luxury retailers Gucci and Prada Group, to ensure the new Westfield Sydney’s retail offer would reflect its status as one of the world’s leading shopping centres.

As Westfield marked its 50th anniversary, the new centre was taking shape with its first-stage opening due later in the same year, less than a decade after the Group made its first investment in the site.

Left: The exterior facade of Westfield San Francisco on Market Street, after redevelopment in 2006.

Below left: Westfield Bondi Junction – the Group’s first centre in Australia to reach $1 billion in annual sales (in 2010).


In recent years there has been a growing focus on sustainability in leading edge shopping centre design. Every new project presents the company with an opportunity to integrate sustainable construction techniques, building materials and operational elements into the life of the centre. In addition to this, many retrofit programs are implemented at existing centres in an effort to improve the sustainability of their operations and reduce environmental impact.

A greater focus on this around the world has led to the Group’s increased participation in various programs to better measure and report on its progress in building ever more sustainable buildings. One example is the Carbon Disclosure Project, an independent, not-for-profit organisation that holds the largest database of corporate climate change information in the world, as well as close involvement with organisations like Green Building Councils in the regions where it operates.

For the most part, Westfield’s wider sustainability efforts are a naturally-occurring part of its business. For example, perhaps the greatest single thing Westfield can do to reduce its impact on the environment is to operate its centres more efficiently, to use less energy and water and produce less waste. Each shopping centre’s business plan includes measures aimed at achieving these goals, and with each year these programs are becoming more targeted and more embedded in the routine business planning of the Group.

While Westfield’s contemporary shopping centre design strives to meet the needs of the broader physical and social environment, it must also accommodate increasingly sophisticated retailer and consumer demands.

There have been significant advances in store design. Retailers have specific requirements for store fit-outs, the materials they use and location within the centre itself. At the same time, customers seek a better shopping experience – in some cases that means valet parking or access to amenities like fashion styling suites or a home delivery service.

When it comes to the design of the centre then, Westfield must listen to shoppers about more than just the shops they want to see in their local centre. Westfield needs to know what type of floor they’d like to walk on and what kind of furniture they want to sit on when dining or simply relaxing in the centre. There is now a greater emphasis on trying to increase the degree to which a shopper can see into the centre from outside, and how much it integrates with its physical setting.

But for shoppers it is obviously not just about urban design and architecture, but about the products available to them and the ease of getting to them. A priority of the design process, therefore, is to create a seamless experience for shoppers, creating a visual link between a precinct of similar shops and the common area that they front, so that shoppers feel they are among a group of distinct high streets rather than moving through a galleria with no cohesive theme or pattern.

To achieve these broad objectives Westfield works with local authorities, retailers and shoppers to create shopping destinations that share a common planning and design goal – world-class retail centres that are finely tuned to meet the needs of retailers, shoppers and the wider community.

designing and Building the Contemporary Shopping Centre

Right: A redeveloped Westfield Bondi Junction in 2004.



Westfield has always considered its primary customer to be the retailer. For Westfield to flourish, the retailers who lease space in its centres must flourish, and over the past 50 years the company has honoured this fact of business life in many ways.

In the early days of the company, Frank Lowy recalls driving around the suburbs of Sydney with the Coles Chairman, Sir Edgar Coles, pointing out potential sites for new supermarkets. During that period Lowy and Saunders would wear out shoe leather encouraging small businesses to take space in their fledgling shopping centres. They would even resort to joining card games with local businessmen in an effort to build relationships with an ever-wider network of retailers.

While much has changed since the 1960s, the culture that began to develop in those early years remains as strong as ever. The company remains acutely attuned to the needs of its retailers and works with them co-operatively for their mutual benefit.

The respect and trust that developed between Westfield and some of Australia’s leading retailers in the 1960s and ’70s was extended to those in the United States, and later to New Zealand and the United Kingdom.

Westfield’s valued customers today are some of the biggest names in the retail world including David Jones, Myer, Coles and Woolworths in Australia; Bloomingdales, Nordstrom, Macy’s and Target in the United States; and Marks & Spencer, Debenhams, John Lewis Partnership, H&M and Zara in the United Kingdom.

But just as important to the overall success of Westfield are the thousands of smaller retail businesses that make up the majority of Westfield tenants.

Again, in the early years, Saunders and Lowy often became firm friends with these smaller retailers. One example is the case of the late Andrew Lederer, who was persuaded by Saunders and Lowy to establish a butcher shop in Westfield Liverpool in the early 1970s. The ambition of the two Westfield partners had always impressed Lederer, and he found the combined force of their personalities irresistible. His business – Joe’s Meat Markets – grew to dozens of stores, with as many as 18 in Westfield centres at one time.

Westfield has followed its traditional approach of building relationships with key retail customers in each of the new markets it has entered over the years, and of course in its original market in Australia. The global nature of Westfield’s business has also meant that the Group has been able to work with various retailers across multiple markets and in some cases even bring retailers into a new market.

In its newest market, the United Kingdom, the Group needed to establish new relationships with retailers big and small in order to gain a foothold and establish successful schemes in that territory. UK & Europe Managing Director Michael Gutman said, ‘Relationships with the key department stores groups of Marks & Spencer, Debenhams and John Lewis Partnership were critical, but these needed to be created from scratch.

retail relationships

The Lifeblood of Westfield

Right: Some of the many retailers Westfield works with around the world.


The fact that we had a major development pipeline which had resulted from the intense corporate activity of the early part of the decade was a good start in getting their attention, but actually delivering successful new stores together is how the relationships really get formed.’

Strengthening these relationships is a key component of the Group’s ability to deliver major projects in any new market, but particularly a new one. It’s not only department stores that Westfield seeks strong associations with: specialty retailers are an integral part of any Westfield shopping centre and important to its overall vitality.

Today, Westfield’s approach to managing its relationships extends to a range of programs developed over time to help retailers operate their businesses more effectively. These include seminars with industry experts, consulting and mentoring services, online training programs, and regular international ‘study tours’ which enable retailers to stay in touch with developments in other markets.

Below: Westfield’s Frank, Steven and Peter Lowy and Michael Gutman with the Mayor of London Boris Johnson and leading UK retailers: John King, House of Fraser; Hubert Spechtenhauser, Commerz Real; Don McCarthy, House of Fraser; Philippe Schaus, Louis Vuitton; Stuart Rose, Marks & Spencer; and Philip Green, Arcadia Group.

Right: Westfield Bondi Junction’s Harbour Room dining precinct, Sydney.

Far right: The Southern Terrace dining precinct at Westfield London.

The options for dining at contemporary Westfield shopping centres are beyond anything that could have been imagined 50 years ago. The original shopping centre food courts were created with one goal in mind – to feed shoppers while they shopped. Fast food, cardboard containers and disposable cutlery were the order of the day. Today, dining precincts at Westfield centres offer a range and quality of dining choices that are destinations in their own right.

A turning point in the Group’s approach was the redevelopment of Sydney’s Bondi Junction centre. One of its defining features was, and remains, the quality and range of food it offered – a casual dining terrace called the Harbour Room, with views over Sydney’s harbour, and a separate precinct with more traditional fine dining restaurants. The Harbour Room became an instant drawcard for shoppers – an open gallery dotted with distinctive food retailers offering freshly cooked meals while the shopper could enjoy the experience of ‘food as theatre’. The overall experience for the shopper-come-diner was paramount.

The model was a success and when the Group developed its next flagship centre at Century City in Los Angeles in 2005 it included a new dining terrace ideally suited to the outdoor Californian mall. The reopening of Westfield San Francisco the following year also included a precinct that offered shoppers an improved dining experience as well as a selection of high-quality restaurants.

fine dining at the Mall


Westfield London provided the next opportunity to continue the evolution begun at Bondi Junction. When Westfield acquired its initial interest in the centre in 2004 the existing redevelopment plans included just a handful of food outlets, none of which would have been out of place in the shopping centre food court of old. A high-quality development well located close to the affluent demographic of west London was an obvious place to create a quality dining offering. By the time the centre opened in October 2008, the food precinct was a major focus of the centre, with 50 outlets offering indoor and outdoor dining at a range of price points. For many of the food retailers and restaurateurs it was their first opportunity to operate in a shopping centre. One of Westfield London’s most compelling attractions is its unique combination of high-quality retail, dining and leisure activities and these have been a major contributing factor to the centre’s success. The opening of a 14-screen Vue cinema precinct in 2010 quickly became one of the top cinema locations in the United Kingdom, reinforcing the importance of the combined food and leisure experience at Westfield London.

Upgrades of dining and food facilities across the portfolio are bringing major benefits to retailers as well as introducing new retailers and helping them grow their business with Westfield.


Westfield Group today has around 4000 staff working in four countries. Twenty four hours a day, seven days a week, Westfield has a shopping centre open somewhere in the world. It hosts almost 24 000 retailers who are headquartered all over the world.

By the end of the 1980s it was clear that an increasing international presence required a new management structure, new human resources practices, policies and procedures and an efficient single operating platform to underpin the next stage of the Group’s development.

Westfield Chairman, Frank Lowy, has described the evolution of the Group’s executive team and its structure as one of moving from a founder-run business overseen closely by two partners, to a mature global organisation with day-to-day responsibility shared among a senior team of professional managers.

‘Several years ago we crossed the threshold from a founder-run business to a professionally-managed, though still entrepreneurial and hard-driving company,’ he said.

‘We achieved this some years ago when I stepped back from day-to-day operations, delegating this responsibility to Steven and Peter Lowy as Managing Directors and to a global operating committee, which includes the Chief Financial Officer Peter Allen, Group General Counsel Simon Tuxen and the heads of each country – Robert Jordan in Australia, Michael Gutman in the UK and John Widdup in the US. This has proven to be an extremely successful model and our most senior executives have earned respect both inside and outside the company, and in each of our markets around the world.’

Frank and Shirley Lowy’s three sons had grown up in the business, and as youngsters they would often go with their father and Saunders on the pair’s weekly Saturday-morning tours of the centres. These formative experiences

with Westfield were formalised when each of them joined the business in the early years of their careers, following their tertiary education in business studies at the University of New South Wales.

Eldest son David began his official time with the company in 1977 when it was expanding into the United States, and later assumed roles heading various divisions of the Group. In 1980, he returned to Australia, becoming Managing Director in 1987, and in 1993 was appointed to run the business globally.

In 2000, David relinquished his executive responsibilities and was appointed non-executive Deputy Chairman of Westfield Holdings. He is also Managing Director of the family’s private company, the Lowy Family Group.

Peter Lowy joined the company in 1983 following several years in investment banking on Wall Street and in London, and assumed the role of Assistant Treasurer to the company, as well as managing the recently formed Westfield Trust. In 1990 Peter moved to the United States where he oversaw the dramatic growth of Westfield’s US business during the ’90s.

Steven Lowy worked for First Boston in New York in real estate finance and mergers and acquisitions. His first role with Westfield, in 1987, was managing Garden State Plaza in New Jersey, before returning to Sydney to assume management of Westfield Trust. Steven later took on responsibility for operations in Australia, New Zealand and the United Kingdom.

As the decade began Peter and Steven increasingly shared responsibility for the overall management of the Group, with Peter developing a focus on capital management and Steven on development and operations. At the same time, the Group was moving to an operational structure effectively managed by chief operating officers

the Westfield team – from Partnership to Professional


in each market with full responsibility for the business in their particular country. This structure brought a number of benefits, including more efficient sharing of knowledge across all markets, quicker decision-making and the opportunity for executives to move internationally.

Today, this approach of sharing knowledge and relocating managers between markets extends to all levels of the Group. A range of programs overseen by the Group’s human resources division aim to increase the skill and expertise of staff and offer new and interesting ways to advance careers.

Supporting the many development programs is a ‘people planning’ process that is conducted regionally and internationally with a biannual review of performance. These forums are the basis of the Group’s management and succession programs and are designed to ensure a smooth transition of leadership, expertise and experience at all levels of the business.

In the United States, the Westfield Foundational Leadership Program was established and exported across the Group globally. Operating across all divisions, the program provides management training to Westfield executives, more than 350 of whom have graduated. Similar programs operate in Australia and the United Kingdom. In 2008, the Group launched a new annual Westfield Strategic Leadership Program, aimed at encouraging and developing high potential talent globally. Underpinning these is the Westfield Executive Leadership program. Westfield’s strategic approach to ‘people planning’ culminates globally in an annual session with the full board of directors, ensuring that the standard of the Group’s leaders continues to be honed and refined to be the very best it can be.

Below: Westfield Group’s Global Operating Committee.

Above left: Joint Managing Directors Steven and Peter Lowy at an investor presentation in Sydney, 2006.

Left: Frank Lowy with sons David, Peter and Steven at Westfield Bondi Junction, 2010.

Mr Michael GutmanMr Michael Gutman Mr John Widdup Mr Robert JordanMr Peter Allen Mr Simon Tuxen


Vale richard Green

In 2006, Westfield lost a dear friend and colleague with the passing of Richard Green.

Richard’s contribution to the Group cannot be overstated. He joined the company in 1980 and was a driving force in the growth of the business in the United States. He won the respect and admiration of all he came into contact with. He was a trusted colleague whose fierce loyalty to the company was legendary. Richard was a generous soul in every way. He made helping others part of his daily life and performed countless acts of kindness to so many people, including those close to him and many he did not know personally in the wider community. He always did this with great humility, very privately and without fanfare.

It is fitting that in the year of Richard’s passing the Group was able to launch one of the most prestigious developments in its history – the restoration of the San Francisco Centre in the heart of that city’s retail and business precinct. It was Richard’s imagination, and then his expertise as a consummate developer that helped bring this complex project to fruition and returned to the city and its people a much loved and valued part of its heritage. Perhaps more than any of the hundreds of projects Richard worked on during his long career with Westfield in the San Francisco Centre he has left a legacy by which all at Westfield will remember him as one of the genuine leaders of the shopping centre industry. This sentiment is recorded in a special plaque at the centre unveiled by Peter Lowy and Richard’s family when the centre was launched.

The Group lost a great friend in Richard’s passing, who will be sorely missed, but never forgotten.

Above and opposite: Westfield San Francisco – a tangible legacy of Richard Green.

2 0 0 0 –2 0 0 9 A Global Structure for a Global Company 153

In 1991, the memories of two men who had been pivotal in the development of Westfield were honoured.

The two former directors, the late Walter Pisterman and the late Donald Stephens, had both played crucial roles when the company was still finding its feet.

Pisterman had shown confidence in the fledgling Westfield and had not only invested in it but given it its first international exposure.

To honour him, a beautiful public nature walk was opened at Point Nepean National Park in Victoria.

Westfield funded the walk which it called the Walter Pisterman Heritage Walk.

Stephens was an inaugural board member in 1960 and was Westfield’s first chairman. He became deputy for about four years and then resumed the chair.

With his background and experience in commerce, he was able to hold the helm firm through good and bad economic times alike.

To honour his memory, a William Delafield-Cook painting was presented to the Art Gallery of New South Wales.

Vale Walter Pisterman and donald Stephens


list of current and previous directors of Westfield Group and associated entities

Tony Berg Jillian R Broadbent William J Falconer Robert A Ferguson Roy L Furman Peter H Goldsmith David M Gonski Richard E Green Andrew Harmos Frederick G Hilmer Herman Huizinga Stephen P Johns Paul Kent David H Lowy Frank P Lowy Peter S Lowy Steven M Lowy Robert C Mansfield Bernard Marcus John McFarlane Walter Pisterman Andrew J Rogers QC John Saunders Brian M Schwartz Larry Silverstein Judith Sloan Donald R Stephens Reginald Stevens John B Studdy Francis T Vincent Gary H Weiss George Weissman Dean R Wills Leslie L Winter Carla Zampatti

In 2010 Frank Lowy acknowledged the enormous contribution of the Westfield Board of Directors to the Group’s success.

‘I would like to thank the contribution of the many directors who have served on the board of the company during its 50 years,’ he said. ‘Few companies anywhere have been better served than Westfield by the wise counsel and guidance of its board.’

The evolution of the composition and role of the Westfield Board of Directors over the years follows a similar pattern to that of the executive team. The theme is a familiar one – a core group of long-serving directors supplemented with the regular addition of new directors to provide new perspectives and experience from different sectors and markets.

The first Board of Directors comprised Donald Stephens, Paul Kent, Frank Lowy and John Saunders. All were Sydney-based and only Lowy and Saunders held executive roles within the company.

In the decades that followed, as the business grew in scale and complexity, a wider range of skills and knowledge was required and the make up of the board changed to accommodate this fact.

‘A successful board always involves a bit of a balancing act,’ Lowy told shareholders in 2009. ‘You need experienced directors with an understanding of Westfield’s past, as well as new directors with fresh ideas and new ways of looking at things.

‘You need executive directors with a deep knowledge of how the business runs and non-executive directors with broad experience in other industries or different markets.’

An independent report of the board’s capabilities by a firm specialising in corporate governance found that Westfield had got the ‘balancing act’ right.

The report noted the strong mix of skills amongst the directors, the disciplined decision-making process and the strong influence of the non-executive directors on management proposals. It also recognised a successful group dynamic that allowed for vigorous debate yet fostered respect and trust.

Today, the board of directors comprises 13 members, including four executive and nine non-executive directors. One director is based in the United Kingdom and two in the United States.

the Westfield Board

Current Board of directors

Dr Gary H Weiss

Mr Frank P Lowy ACChairman

The Right HonourableLord Goldsmith QC PC

Mr David H Lowy AMDeputy Chairman

Mr Roy L Furman

Mr Stephen P Johns Mr David M Gonski AC Mr Peter S Lowy Prof. Frederick G Hilmer AO

Mr John McFarlane Mr Brian M Schwartz AM Mr Steven M Lowy AM Professor Judith Sloan



Westfield centres have always played an important role in their community, not just by generating economic growth but by providing a focal point for community activities and charities. As the company grew, it built on this local focus to make contributions on a larger scale by supporting hospitals and medical research organisations as well as national programs in education, sport and support for disadvantaged groups within the community. Over the years, the Group has also been a regular contributor to relief efforts in the wake of natural disasters.

Today, Westfield is actively involved in supporting hundreds of community initiatives through its shopping centres around the world and takes seriously its corporate responsibility to contribute in a meaningful way to society.

During the past decade, Westfield has built on long-term relationships with respected institutions and programs. In Australia, these have included the Victor Chang Cardiac Research Institute, Sydney Children’s Hospital and the Westfield Premier’s Teacher Scholarships; in New Zealand the Te Omanga Hospice and more recently the Starlight Children’s Hospital Cancer Unit; the UCLA Jonsson Cancer Center and St Jude’s Children’s Hospital in the United States; and Help a London Child in the United Kingdom.

In addition to this corporate-level support, Westfield is involved in a range of local, regional and national community programs and one-off initiatives.

In Australia, Managing Director Robert Jordan recently implemented a program to use all centres across the country to support the families and carers of disabled children. While this is promoted on a national level, individual centres also provide support on a local basis to relevant groups that help this cause in their own communities. A workplace giving program has also been

Westfield in the Community

developed, allowing staff to make tax-free donations to a selected group of charities, many of which also provide support to disabled children.

In its other markets Westfield also supports a wide range of local causes ranging from literacy programs in the United Kingdom, critical services support (fire and police) in the United States to Westfield New Zealand’s long-standing Style Pasifika event – a cultural program showcasing the nation’s best indigenous design and performance talent.

The Group also provides relief support following natural disasters, the biggest in the decade being the 2004 tsunami which devastated several countries in south Asia. In 2005 the Group also made a major donation to the victims of Hurricane Katrina in the United States through funds raised from Westfield staff and shoppers, combined with a corporate donation.

In 2009 Westfield made a significant donation to the victims of the Victorian bushfire tragedy and joined the nation’s efforts to help victims not only through its corporate donation, but by providing its shopping centres as rallying points for community fundraising and drop-off locations for emergency goods.

Similarly for the San Diego bushfires in 2007, Westfield centres in the area were able to make a major contribution to assisting emergency workers and survivors, by again providing a community gathering space for emergency personnel and evacuation needs.

Westfield is proud of its contribution to these activities, and many more not mentioned, over its 50-year history. With each decade the Group’s involvement in the community has grown deeper and become a hallmark of the Westfield Group around the world.


Above and left: Some of the institutions and programs Westfield supports around the world.


The hallmark of the Westfield Group is of course its brand. In the early days of the shopping centre industry no-one branded malls, and though the Group’s co-founders Frank Lowy and John Saunders began to the use the name that recalled their humble beginnings – in a ‘field’ in the ‘west’ of Sydney – initially it was simply a sign over the door.

Today, clearly, the Westfield brand means so much more and sends a powerful message of shopping centre excellence to the world, which is understood by retailers, shoppers, investors and staff. For the Group’s primary customers, the retailers, the Westfield brand means that the malls will be of a consistently high standard – clean, secure, planned, managed and marketed well, and designed to maximise the performance of the retailers themselves. For the consumer, the Westfield brand means a quality shopping experience that allows people to enjoy the malls with their friends and family in an environment with good service and the best shops. For investors, the Westfield brand means sound long-term returns, and for staff, it represents the opportunity to work for a leading global company in which they will be challenged and rewarded.

The International Council of Shopping Centers described the Westfield portfolio as invoking ‘in the minds of shoppers and competitors a specific image of quality that no other shopping centre company has achieved’. Westfield has a very strong brand image and a very strong connection to the local community.

The branding of Westfield centres began at Burwood in Sydney in 1966, and was progressively used in almost every shopping centre the company has since managed,

with Westfield subsequently recognised by The International Council of Shopping Centers as a pioneer of branding.

In the second half of the 1990s, Westfield began branding in the US. Surprisingly, despite some of the world’s most powerful brands originating in the United States, the idea of branding shopping centres was entirely new.

The branding of shopping centres – in Australia, New Zealand, the United States and more recently the United Kingdom – has allowed Westfield to pioneer centre branding as a statement on the quality of the retail offering – not only for shoppers, but for retailers as well. Both groups in Westfield’s operating markets associate the Westfield brand with a superior shopping experience.

Introducing the Westfield brand to London has had a massive impact on raising awareness of the brand in one of the world’s most visited cities, far beyond what had occurred one year earlier when the Westfield brand launched in the United Kingdom at the redeveloped Derby centre.

Now, when Westfield buys or redevelops a centre it works to implement branding programs as quickly as possible to create a recognisable identity.

Westfield’s pioneering spirit in the United States has attracted the interest of Harvard Business School, which developed a case study highlighting Westfield’s branding. Branding is aimed at more than just boosting customer traffic through the stores – it also underwrites the quality of Westfield’s offering to retailers, shoppers and investors.

the Westfield Brand

Opposite and above: The Westfield brand – then and now.


As Westfield entered 2010 the world’s economy was delicately balanced, but shopping centres were reinforcing their position as irreplaceable components of urban and suburban infrastructure. They have become part of the fabric of society. Today, people use them more often, and for more things than just shopping. And Westfield’s shopping centres are of the highest quality.

A relentless drive to quality has been a hallmark of the Group since its establishment. Quality assets are attractive to retailers and shoppers and continue to perform well relative to lesser assets, even when times are tough. They outperform in good times, and are resilient during economic downturns.

And now the Group is again looking ahead, planning and positioning the Group for the next stage of growth: exploring new business opportunities. Westfield has established strong positions in key strategic markets. It still sees significant opportunity in each of those markets, and, as always, continually examines opportunities in new markets.

Westfield begins the second decade of the 21st century a confident, global, innovative and driven company. As would be expected, in 50 years much has changed, yet much remains the same, but all of its achievements reflect a zealous commitment to careful planning.

It is restless, creative, dynamic and, as you read this, somewhere in the world the Group is looking ahead again, planning and positioning Westfield for the next growth opportunity.

They are writing the next chapter in an extraordinary story that is 50 years old but where a new decade of opportunity is just beginning …

Another decade dawns


Left: An artist’s impression of Westfield Sydney, due to open in stages from late 2010.

Below: An artist’s impression of Westfield Stratford City in London, due to open in 2011.

162 Westfield 5 0 ye ars

Australia51 FrankLowy ChairmanandCo-Founder34 DavidLowy** DeputyChairman34 DavidSlade LeasingDirector33 AntoniusSulsters DirectorDesign&Construction33 StephenJohns** CompanyDirector33 DanielHofbauer DivisionalDirectorConstruction31 TedGaras ControllerOperations30 JohnSaunders CompanyDirectorandCo-Founder30 WendyMcCall OfficeManager–CentreManagement30 WayneMarr GeneralManagerDesignProjects30 LaurenceElliott RiskManagementCoordinator30 MarionHauser OfficeCourier29 VoulaFarmacoula SupervisorCorporateServices29 AndrewWinks ElectricalConsultant29 BernardRoden GeneralManagerLeasingProjects28 JamesNelson SeniorProjectManager28 AlanSumner SeniorConstructionManager27 MeganJohnson RegionalManagerLeasing27 CharlieTomarchio RegionalManagerLeasing27 MauroAndreula Maintenance–CentreManagement26 JosephFertman Painter26 BrianFuller GeneralManagerLeasing26 RichardRoberts StateOperationsManager26 AndrewNelson GeneralManagerProjectFinance26 SueO’Malley GeneralManagerFacilities&Operations26 StephenLewis FacilitiesAssistant–CentreManagement26 BingLing ManagerServicesEngineering25 AlanTurner FacilitiesAssistant–CentreManagement25 BernadetteGoldsteinDelaney Directors’Receptionist25 StevenPetrohilos GeneralManagerGroupPerformanceReporting25 EamonnCunningham ChiefRiskOfficer25 JohnPatrick FacilitiesAssistant–CentreManagement25 MalcolmBrooke Commercial/DesignManager25 AndreaGrant SeniorLeaseAdministrator25 RosemaryStafford AdministrationAssistant–CentreManagement25 RossFinlayson GeneralManagerConstruction25 EddyCandlish FacilitiesSupervisor–CentreManagement24 ColinClarke Maintenance–CentreManagement24 DouglasKaipara SecurityOfficer–CentreManagement24 AiseaRaikiwasa SecurityOfficer–CentreManagement24 PeterSchmidt RegionalFacilitiesManager–Centre

Management24 CecilyMcKillop PersonalAssistanttoGeneralCounsel

Australia&NewZealand24 TimWalsh GeneralCounselAustralia&NewZealand24 StevenLowy GroupManagingDirector24 JimMeagher NationalRetail&PerpetualAccountExecutive24 HenryChuah MechanicalEngineer24 JohnSmith SeniorAnalystProgrammer24 VickiSampson Receptionist–CentreManagement24 FrankAlvarez PrincipalDesignerConcepts24 PeterScreen CommercialPropertyManager23 MartinJoy BuildingServicesEngineer23 TerryThirukumar ProjectCommercialManager23 VincentVas GroupGeneralManagerCorporate23 SteveBrowne RetailDesignManager23 DavidBrunker ProjectCommercialManager23 KentBuck RetailManager–CentreManagement23 FranszDeZilva NetworkManager23 ThepSylaprany ConceptualDesigner23 RolandWong GeneralManagerDesignConcepts23 DavidMyers GeneralManagerLeasingAdministration23 GrahamTheel Air-ConditioningMaintenance23 ThiyagRadhakrishnan SolutionsTechnicalArchitect

23 RobertJordan ManagingDirectorAustralia&NewZealand22 WayneBrowne FacilitiesManager–CentreManagement22 BrianMay FacilitiesCoordinator22 RossThompson GroupGeneralManagerBusinessSystems22 LindaCave SeniorCentreManager22 ChrisStone SeniorArchitectDraftsperson22 DavidSampson MaintenanceTradesperson–CentreManagement22 DinishShah FacilitiesAssistant–CentreManagement22 JaniceMacks AccountsPayable–CentreManagement22 VictoriaJones AdministrationOfficer–CentreManagement22 JohnAllen CarParkSupervisor–CentreManagement22 StanleyChudleigh FacilitiesSupervisor–CentreManagement22 AnnHenderson ManagerSpecialProjects22 SantinaGrintzelis SystemsAdministrator22 FinlaySinclair Electrician–CentreManagement22 PhilipCain FacilitiesAssistant–CentreManagement22 JohnHenry ContractsManager22 SteveSutton DirectorofMaintenance22 JasonKnott RegionalManager,EasternSydney–Centre

Management22 CherylPrats ConciergeManager–CentreManagement22 MichaelSwibel NationalAdministrationManager22 JimmyOoi CostPlanner22 JohnSmith MechanicalEngineer21 GayePolak Receptionist–CentreManagement21 MelissaDransfield CentreManager21 DannySambuco OperationsManagerManpower21 BrianGorman RegionalManagerNationalRetailDesign21 RonZeman LeasePlanDesigner21 DebbieMcLean PayrollServicesSupervisor21 DianeBurnett Concierge–CentreManagement21 NaumApoleski FacilitiesAssistant–CentreManagement20 ReginaldStevens CompanySecretary20 PeterSchmalkuche GeneralManagerApplicationServices20 MaxGeorge SecurityOfficer–CentreManagement20 MichelMaingard NationalSustainabilityManager20 HenriettaKalepo SupervisorFinanceOperations20 SaroCarapiet RegionalAccountExecutive20 SimonYoo ArchitecturalTechnician20 MurrayWhite ProjectLiaisonOfficer20 GarryModdel SeniorManagerGroupBusinessReview&Audit20 KathyHemmings PersonalAssistanttoGeneralManagerSpecial

Projects20 SteveDay EstimatorManager20 GuyMore SpecialProjectsProjectManager20 MeganFord SeniorRetailDesignManager20 BarryBullen CentreManager20 RonaldWaye Carpenter20 BettyWilliams LeasingClerk20 HazelGradwell AccountAdministrator–CentreManagement19 NevilleCosgrove Facilities19 JulieStainton RegionalManager19 ChristineGodfrey GroupGeneralManager,InvestorRelations19 JanDolan MerchantAdministrator–CentreManagement19 StephenWinter RegionalFacilitiesManager–CentreManagement19 GrahamMitchell GeneralManagerDesign19 KevinPorter LeasingTenancyCoordinator19 AndrewTong AssetAnalyst19 ChrisMcNamara DevelopmentConsultant19 MichaelPrestia MarketingManager–CentreManagement19 AndréPerl ProjectDesignManager19 DarrenJuric SeniorFacilitiesManager–CentreManagement19 MaryDengate Clerk–CentreManagement19 KarenMurphy OfficeManager19 RobertRattray SiteManager19 VioletteZaiter Finance&AdministrationManager–Centre

Management

*service length**Combined years as executive and board member

sl* Name PositioN desCriPtioN sl* Name PositioN desCriPtioN

Westfield Honours long-serving staff – Past and Present

People who have given more than 10 years of service to Westfield

Westfield Honours Long-Serving Staff – Past and Present 163

19 JonKramar SeniorConceptualDesigner19 NabilFarag SeniorConceptualDesigner19 PeterAlderson TradespersonAssistant–CentreManagement18 MichaelMadigan SpecialProjectsCoordinator18 MichaelRichards Engineer18 AlanBriggs DivisionalDirectorCentreManagement18 BasilAdsett Construction18 SydneyScerri Maintenance18 MargaretHay PurchasingOfficer18 ChristopherBates ControllerOperations–CentreManagement18 RobertRapoport ProjectDesignManager18 PhillipWotton RegionalFacilitiesManager18 GrahamSmith OperationsManager18 MichaelMiller SecurityManager–CentreManagement18 BarryWalton DisplayManager18 GlennCochrane CentreManager18 MartinAlderson FacilitiesAssistant–CentreManagement18 FrankZonneveldt Research&DevelopmentManager18 AnneNagel SeniorLeaseAdministrator18 StephenCable FacilitiesAssistant–CentreManagement18 KarenHowland Concierge–CentreManagement18 JulieCurrie Concierge–CentreManagement18 GrahamOdgers Gardener–CentreManagement18 RobertLindsay TradespersonAssistant–CentreManagement18 StephanieWiskar AccountAdministrator17 MeganFord SeniorRetailDesignManager17 AndrewHunter Foreman–CentreManagement17 KevinWhiley SeniorBusinessAnalystProjects17 DuncanAppleton FacilitiesManager–CentreManagement17 TeresaMiller RegionalAccountExecutive17 VickiMyatt FilingClerk17 JamesBankhead Architect17 FrederickGodwin Carpenter/Handyman–CentreManagement17 SandraSchaffarczyk OfficeAdministrator–CentreManagement17 BarbaraDoyle OfficeAdministrator–CentreManagement17 JohnBender Carpenter/Handyman–CentreManagement17 MalcolmCreagh OperationsManager–CentreManagement17 IanNewton DivisionalDirectorLeasing17 HiltonWilliams ProjectArchitect17 PhillipChamberlain ProjectManager17 KenRoy LeasingExecutive17 HeatherGrierson Secretary17 JoePigatto OperationsManager17 LyellMcPherson Engineer17 LisaBone MarketingManager–CentreManagement17 RobRankin RegionalManagerDesignProjects17 SuzanneGordon Concierge–CentreManagement17 PhilTanner GeneralManagerLifeSafety17 DuradOstojic LeadingHandWestfieldSydney17 ShailendraSingh SeniorManagerInfrastructure17 JodieHorton OfficeManager–CentreManagement17 NikolaFurjanic LabourerWestfieldSydney17 GerardMangos SiteManager17 SashaPoljak SpecialProjectsCoordinator17 SimonMore ConstructionDesignManager17 JimBabamovski FacilitiesSupervisor–CentreManagement17 BarryMonaghan DocumentationManager17 HaithamAl-Jawad RegionalManager17 CraigMarshall AssetGeneralManager17 InezWaldon Receptionist–CentreManagement17 PhilipMonfries RetailManager–CentreManagement16 SteveSeidman DirectorTreasury16 AnatoliBogatko NationalPlanningManager16 JanetTurner CarParkAdministrator–CentreManagement16 MarlonTeperson GroupChiefFinancialOfficer16 RossNeate PurchasingOfficer16 MarleneKeil StateAdministrationManager

16 JohnHill SecurityOfficer–CentreManagement16 NicholasHolland SecuritySupervisor–CentreManagement16 KaronCameron MarketingManager16 ShirleyTaylor Receptionist–CentreManagement16 CarolHall RetailSalesExecutive16 RogerWebb ElectricalEngineer16 CoralLaube ConciergeTeamLeader16 WarwickKerlin TeamLeaderMajors16 DamonChivers ProjectManager16 GraceWong FinancialControllerGroupReporting16 DeanHammond Patrolman16 AdrianPowell SeniorProjectManager16 JacquesKlein ManagerFinanceSystems16 RichardLee ResearchAnalyst16 LinoDaruos GeneralForeman16 KeesVanDerWallen Estimator/CostPlanner16 JoleenTeperson MarketingExecutive16 MichaelRapley FacilitiesManager–CentreManagement16 MichaelReynolds ContractsManager16 MarkRyan GroupDirectorofCorporateAffairs16 DebraDaniel Receptionist–CentreManagement16 ThennyZambounis AccountsReceivableAdministrator16 JillianWynn MarketingManager–CentreManagement16 LucyWillmore RetailManager–CentreManagement16 JohnBrady RegionalManager&NationalTenancy

Coordinator16 BeverlyWatson AssistantAcountant16 RhondaBarnett LeasingExecutive16 RamonPreller AccountsPayable16 JonathanTeperson DivisionalDirectorFinance16 BrianMcBurney Maintenance/Carpenter16 RobertSaunders SmallShopsCoordinator16 FrederickVaillant Accountant16 JaimeLualhati OfficeManager16 PhilReiss ManagerAviation16 RachelleKeegan Secretary16 PeterKoruga GeneralManagerCorporateAccounting16 GayeDewick OfficeAdministrator–CentreManagement16 DeborahPool RegionalManagerNationalDesignCoordinator16 RosanneClancy Concierge–CentreManagement16 MatthewJackson AdministrationAssistant15 KathrynAnnis-Brown AdministrationManager–CentreManagement15 GailMcLoughlin-Inwood Concierge–CentreManagement15 EllenJohnson RegionalManagerWA15 LynetteStrada Concierge–CentreManagement15 DamienLawson SecurityManager–CentreManagement15 EvaCzmer SystemsAdministrator15 KorinaBuckley RetailerAccountAdministrator15 GregoryDovey BuildingServicesManager15 IanL’Oste-Brown SpecialProjectsCoordinator15 KarenJones Concierge–CentreManagement15 CraigAdams Electrician15 LeonMiller SupervisorController15 AzizAbwi Accountant15 GrahameBaillie ManagerTenancy15 CharlesDaniels Electrician15 JudyHall NationalFoodController15 DiPocock PersonalAssistanttotheChairman15 MichaelSeyffer DivisionalDirectorBusinessDevelopment15 CarolAngelosanto Olympics,GeneralManager15 BradleyJames OperationsManager15 TimothySchulz Architect15 CarolMoore CustomerService15 ToddGrounds ProjectManager15 ChristopherCrinis LeasingExecutive15 DouglasThomson SpecialProjectsCoordinator15 RichardWade Architect

*service length



15 WendyTomkinson ConciergeSupervisor–CentreManagement15 EdHardy RegionalGeneralManager15 TeroBlinnikka SeniorMarketingManager15 DarrenBurgess BrandCommunicationsManager15 PeterAllen GroupChiefFinancialOfficer15 JasonJames RegionalManager15 KenDixon GeneralManagerCorporateAccounting15 AnoirKhoury FacilitiesAssistant–CentreManagement15 TalbotSanderson RegionalGeneralManager15 AntoinetteJohn Concierge–CentreManagement15 LesMarkovski EnterpriseSystemsSpecialist15 PaulErickson FacilitiesAssistant–CentreManagement15 LoisAdams Concierge–CentreManagement15 MeganClarke PersonalAssistanttoManagingDirector

Australia&NewZealand15 HelenGreen AccountsPayableFountainGate15 SandraJones ProjectTraining&CommunicationCoordinator14 PradeepSingh MaintenanceForeman14 PilarRodriguez SolutionsFunctionalArchitect14 JoannaLayet PersonalAssistant14 PaulBasey Architect14 JohnMcGann Accountant14 JohnDangar NationalMallMerchandiseManager14 GloriaFan Accountant14 MarieMeggitt OfficeAdministrator–CentreManagement14 AngieSaywell InformationHost14 AllanBarker SiteProgrammer14 LuborBaranovic Architect14 RicBouvier GroupFinancePlanner14 JanetMcInerney CustomerService14 MichaelYanco ManagerRetailRelations14 LutzBoerner OperationSupervisor–CentreManagement14 ClaudioOrellana PlanningManager14 MarilynEgan CasualLeasingClerk14 MarkCollingwood RegionalManager14 DeanButterworth OperationsManager–CentreManagement14 KarenWood Secretary14 HelenKielly MarketingManager14 RachaelDickson AdministrationAssistant–CentreManagement14 JohnHunter HydraulicConsultant14 MatthewPeterson ProjectServicesManagerIT14 SarahCain SeniorMarketingManager14 RichardKirkpatrick Concierge–CentreManagement14 GeorgeManno LeasingExecutive14 AndrewCotton SeniorBusinessAnalyst14 IvaAustin PersonalAssistant14 RobynKiddle RegionalGeneralManager14 JulieScales MerchantAdministratorRegional14 FabioBarichello ProjectDesignManager14 JanetLittle Receptionist–CentreManagement14 GregMiles ChiefOperatingOfficerDevelopment,Design&

Construction14 ChrisWong SeniorFinancialAccountant14 LeeGraham NewBusinessCoordinator14 NoreenTruscott AdministrationOfficer–CentreManagement14 WailThomas ProjectDesignManager14 AndrewRobertson ProjectDirectorSydneyCity14 DianneHeld MarketingAssistant14 AndrewPryor GroupGeneralManagerPlanning&Analysis14 DarrylTimmins SpecialProjectsCoordinator14 StephenSimpson RegionalManagerDesignProjects14 SandraDeBarros OfficeManager–CentreManagement14 CharlesPercy ElectricalEngineer14 CarolineCurrie CorporateSolicitor14 AdrianBerehulak LeasingExecutive14 CherylLewis Receptionist–CentreManagement14 PinkyPepingco-Martinez AccountsOfficer

14 ToddHorrell Finance&AdministrationManager14 RanilMadawala ChiefAuditExecutive14 JulieProelss OfficeAdministrator–CentreManagement14 DavidMcCarroll SeniorConceptualDesigner14 MerylNicol LeasingSecretary14 EnzoVinales HydraulicConsultant14 MichaelVlahos MechanicalEngineer14 TrevorFrost ChiefPilot14 GloriaHelou AccountsPayable–CentreManagement14 StephenBrooks Foreman–CentreManagement14 CampbellHaste Concierge–CentreManagement13 JohnMcCallum RetailManager–CentreManagement13 ElizabethNuthall NationalAccountManager13 TimothyPisoni SecurityOfficer13 BrankoPoljak SiteManager13 LynetteDeKleyn Secretary13 DesmondHayes SecurityController13 KeithBurchill GroupTaxManager13 LudmilaSharff AccountsPayable13 TeresaMiller Secretary13 GregoryBertram Solicitor13 GregoryO’Donnell ProjectManager13 DesmondKahn GeneralManagerElectronicReporting13 GeorgeKarabatsos GeneralManagerLeasing13 JuliePearson Concierge–CentreManagement13 GaryDilly SeniorProjectManager13 KathrynEvery SeniorRiskManagementCoordinator–Centre

Management13 AnnetteHenry Concierge13 RexSmith AssistantFacilitiesManager–Centre

Management13 MatoBumbar FacilitiesAssistant–CentreManagement13 AndyRamsay Security/CustomerService–Centre

Management13 KieranFlannery FacilitiesElectric–CentreManagement13 GarySandgren Chairman’sDriver13 MartinKeyes FacilitiesManager–CentreManagement13 JacquelineSteel OfficeAdministrator13 DennisKnott FacilitiesAssistant–CentreManagement13 IainOliver RegionalFacilitiesManager13 TeresitaFrigel Housekeeper13 GregoryBanks Architect13 AndrewBrown Gardener–CentreManagement13 SarahOldfield PersonalAssistanttoGroupDeputyChief

FinancialOfficer13 KaTong Engineer13 KayReeves ISOperator13 RichardWyszenko FacilitiesManager–CentreManagement13 AnnettePodvorec AdministrationAssistant13 RandallCunningham ProjectArchitect13 MichaelBeckwith ProjectManagerCarParkStrategy13 JaneScheffler Concierge–CentreManagement13 ChristineCameron Concierge–CentreManagement13 RoyGruenpeter NationalManagerNon-ManagedAssets13 JodieLemmey OfficeAdministrator–CentreManagement13 PamelaBrown Concierge–CentreManagement13 StevenThomas ProjectPlanningExecutive13 DeniseNakis SeniorMarketingManager13 JamesEarl LeadingHandCarpenterWestfieldSydney13 SharonSimonet Concierge–CentreManagement13 OrianaRoberts OfficeManager–CentreManagement13 BobSteven SecurityManager–CentreManagement13 AliciaKemp FashionCategoryManagerLeasing13 DudleyHeywood HeadofTaxAustralia&NZ13 RobertBinns Estimator13 MarkoKrndija FacilitiesManager–CentreManagement13 StellaPegler Concierge–CentreManagement


*service length


13 LillianKomarek SeniorRiskManagementCoordinator–CentreManagement

13 AndrewRenfrey ExecutiveGeneralManagerLeasing13 MaryanneDrinkwater Concierge–CentreManagement13 MartinJones GeneralManagerSpecialProjects13 CarolHudson SeniorRiskManagementCoordinator–Centre

Management13 SandraFord AccountsPayable–CentreManagement12 ChristineSearle CustomerService12 JacquelineZaiter CustomerRelationsExecutive12 MichaelCarr OperationsManager–CentreManagement12 LiamCrocker ForemanElectrician–CentreManagement12 RodneyBennett ProjectArchitect12 RodolfoO’Laco Architect12 SilvanaBariesheff Receptionist–CentreManagement12 LeahFinlay NationalAdvertisingManager12 JohnSouvleris MarketingManager12 GregoryHayes ProjectPlanner12 NoelMcDonough Electrician12 PeterPike CentreManager12 ReginaldGoodes StateOfficeManager12 JulieConnolly InvestorRelationsManager12 PaulHynes Maintenance12 WillieAllchin Architect12 PatriciaByrnes PayrollManager12 TrevorDill CentreManager12 IanMcKillop Director12 MargaretHardman Secretary12 JanineWard Clerk12 TrevorGerber Manager,WestfieldTrust12 JulieQuayle GeneralDutiesCoordinator12 TimothyNolan ProjectDesignManager12 JohnO’Loughlin RegionalManager12 RobertBattagello SeniorFacilitiesManager–Centre

Management12 SuzanneHoward AdministrationOfficer–CentreManagement12 PaulSwerdlow CentreManager12 StuartBrodie CentreManager12 FrederickGoodhew FacilitiesAssistant–CentreManagement12 JohnGebert SecurityOfficer–CentreManagement12 CarlaSpender CompanyDirector12 DeniseBambridge Concierge–CentreManagement12 ArthurSpiropoulos Concierge–CentreManagement12 MichaelDavies SecurityOfficer–CentreManagement12 DavidJenkins AssistantProjectManager12 StephenRoss SiteManager12 PeterBurdon-Smith ProjectLeasingManager12 NikolaBotic Carpenter–CentreManager12 JodieHorton OfficeManager–CentreManagement12 MaureenSmith ActingGeneralManagerTaxation12 PatakaBush SecuritySupervisor12 HarrySymonds FacilitiesAssistant–CentreManagement12 TraceyPrentice RiskManagementCoordinator12 PeterCole SeniorBusinessAnalyst12 GaryPinter GeneralManagerLeasing12 KellieWallis PersonalAssistanttoDeputyGroupChief

FinancialOfficer12 RosemaryCondron-Calic CentreManager12 BarneyTeperson NSWCarParkCoordinator12 ChristineMurphy OfficeAdministrator12 RobynRouse SeniorManagerNationalTenants12 AnnNolan TraineeAdministrationAssistant12 RosemaryKnight CarParkAttendant–CentreManagement12 JulieWimshurst OfficeManager–CentreManagement12 TimothyRoberts RegionalGeneralManager–Centre

Management12 SueTaylor Concierge–CentreManagement

12 JohnPapagiannis DirectorLeasing12 VinceTran ContractsManager12 SamanthaHunter FacilitiesAssistant–CentreManagement12 ChrisPanagiotou FacilitiesAssistant–CentreManagement12 MaryDraper TrainingManager12 ElliottRusanow GroupDirectorCorporate12 StephenAquino ServicesEngineeringTech12 JohnMarshall DevelopmentExecutive12 SimonLyster ProjectRiskManager12 RichardKeller SeniorCaptain12 PeterDoubtfire SpecialProjectsCoordinator12 ShaleneToohey Concierge–CentreManagement12 JudithMiloi Finance&AdministrationManager–Centre

Management12 AlexRumyantsev DataWarehouseDeveloper12 BarrySchleter FacilitiesAssistant–CentreManagement12 AnnabelChoi ManagerCorporateAccounting12 DavidBrennan DevelopmentExecutive12 GeorgeCaton Concierge–CentreManagement12 LolaDavey Concierge–CentreManagement12 RitaSimonetta MarketingManager–CentreManagement12 PhilipTrinder GeneralManagerPlanning&Management12 LawrenceSalani FacilitiesAssistant–CentreManagement12 PaulGiugni DeputyGeneralCounselAustralia&NZ12 HeatherTavita AccountsPayable12 LillianFadel DevelopmentExecutive12 BrianMackrill DirectorFinance12 TrishJackson Concierge–CentreManagement12 MalcolmCreswell RegionalManager–CentreManagement12 BrianMcLennan FacilitiesSupervisor–CentreManagement12 JosephSalvo Concierge–CentreManagement12 RitaPotter Concierge–CentreManagement11 JohnMcCallum CentreManager11 GraemeMaher DirectorHumanResources&RetailRelations11 BarryCoster SeniorProjectManager11 ChantelCarter Concierge–CentreManagement11 TonyMcGrath SeniorSecuritySupervisor–Centre

Management11 StuartFinch TenancyDeliveryCoordinator11 ShaneEdwards SpecialProjectsCoordinator11 DavidSkinner FacilitiesSupervisor–CentreManagement11 GregoryDay PortfolioManager11 GenevieveFreund OfficeAdministrator–CentreManagement11 JaclynBoes MediaSalesExecutive11 KathrynDowling RegionalMarketingManager11 MelindaDaniel OfficeAdministrator–CentreManagement11 NatalieWebster CentreManager11 JohnFondas ProjectCostPlanner11 DavidKirsh BusinessImprovementAnalyst11 GlynWilliams RegionalGeneralManager11 StevenMoores SecurityOfficer–CentreManagement11 RobertSheard CarParkAttendant11 RobertKeen Gardener–CentreManagement11 CaterinaBedford EH&SFacilitator11 KimPetidis Concierge–CentreManagement11 MohammedKhan Concierge–CentreManagement11 DamonRiley SecurityGuardSupervisor11 ArronFischer ContractsManager11 JenniferParr RegionalMarketingManager11 ImadShihadeh ClericalAssistant11 CarolineDickenson InsuranceCoordinator11 GeorgeHarris Executive11 GeoffreyWinter Gardener11 GrahamMiller Security11 AlexanderDenic SecurityGuard11 JamesRogers SiteManager11 MichelleAbbey InternetExecutive


*service length


11 KellieCarr Secretary11 GeorgeFidler AssetAnalyst11 GeorgeSoban Maintenance/Foreman11 BettinaConnell-Pine AssistantPayrollManager11 ChristineHunt CustomerService11 PatriciaAuld Secretary11 SharonTaylor AssistantProjectsManager11 VickiHughes Clerk11 DonaldHawking StateManager11 GeoffreyWarrener Pilot11 ValmaiGoulding Bookkeeper11 AdamEyre Programmer11 PaulO’Brien StateLeasingExecutive11 SaraGledhill Secretary11 MartinWaite Caretaker11 JohnMartin Engineer11 KaronDunning NationalCustomerServiceManager11 RobertNatoli SeniorLeasingExecutive11 DeborahDodd FacilitiesAssistant–CentreManagement11 LouiseConnor NewBusinessInitiativesRelationshipManager–

CentreManagement11 AndrewHulls GeneralManagerLeasing11 NikkiFisher RegionalManager11 KateJarman RetailManager–CentreManagement11 RichardFricke PropertyFinanceManager11 LisaO’Brien AccountsOfficer11 PeterFarmer ServiceDeliveryManager11 JudiMudge Concierge–CentreManagement11 GregoryWatson Electrician–CentreManagement11 MaureenMcGrath DeputyGeneralCounselCorporate&

Compliance11 PeterTrinh RetailManagerWoden11 ShaneThompson AssetGeneralManager11 RyanWallis FacilitiesManager11 KimKnight Concierge–CentreManagement11 GarlinnLee SeniorAnalystGiftCards11 AnnetteBrowne SystemsAdministrator11 AlisonWebster PersonalAssistanttoGroupDirectorCorporate

Affairs11 JohnRiddell ComplianceManager11 TiffanyGomez ConciergeFigtree11 MichaelRussell FacilitiesManager–CentreManagement11 PaulWood SiteManager11 AndrewStevens RegionalManager11 JanMcNicol FilingClerk11 ErikLarsen TradespersonAssistant–CentreManagement11 MichelleVanzella DirectorBusinessDevelopment11 JudyRitter Concierge–CentreManagement11 DavidRuddick GeneralManagerLeasing11 PeterBurridge FacilitiesPlumber–CentreManagement11 PhilCribbin CourtesyDriver–CentreManagement11 MarkWilliams Electrician–CentreManagement11 KateGrieve CentreManager11 KylieElliott Concierge–CentreManagement11 DanAustin ITManager11 LynBoyle Concierge–CentreManagement11 VickiRogers AccountsPayable–CentreManagement11 HeatherMeakin Concierge–CentreManagement11 SoniaTaylor RiskManagementCoordinator11 DianneKishawi CarParkAttendant11 AnnetteCotter CentreManager11 JudySimmiss SeniorLeaseAdministrator11 AntoniPetricevich SeniorManagerFinance11 GlenPidgeon ProjectDesignDirector11 StephO’Sullivan Concierge–CentreManagement11 KimWooden Concierge–CentreManagement11 PamRyan FacilitiesAssistant–CentreManagement

11 CaroleMyers ConciergeSupervisor–CentreManagement11 JulieLand FinancialAccountant11 CharlesFalzon FacilitiesAssistant–CentreManagement10 JamesTurner DevelopmentExecutive10 GeoffreyMatthews SecurityOfficer10 JefferyBreen DevelopmentExecutive10 SammyFalzon Facilities/Gardener–CentreManagement10 JoanneConti-Piriz RegionalAdministrationAssistant10 ValerieHarding Concierge–CentreManagement10 DonaldFelice Concierge–CentreManagement10 RobertMcCulloch SeniorDevelopmentManager10 PeterOlsen SpecialProjectsCoordinator10 JohnChibnall CarParkAttendant–CentreManagement10 AdamDavis TM1DevelopmentAnalyst10 AnneClarke LeasingExecutive10 GregoryPeddie JuniorCadet10 LeanneKovacic ManagementExecutive10 JohnHinsley Facilities10 AndrewGardoni FacilitiesManager–CentreManagement10 MehjabeenMerchant MerchantAdministrator–CentreManagement10 JoanneBrody PersonalAssistanttoRegionalGeneralManager

–CentreManagement10 TatjanaRizoski AccountsPayableClerk10 JulieScales AccountAdministrator10 CatherinePavone RegionalControllerProjects10 TiffanyKatchmar RegionalMarketingManager10 DennisBrackman MonitoringCentreOperator10 WendyZecevic Concierge–CentreManagement10 KellyRobinson Finance&AdministrationManager10 KallyZois AccountsPayable–CentreManagement10 KalaiChinniah BankingOfficer10 JasonHiggins RetailManager–CentreManagement10 TimLeibbrandt LeasingExecutive10 TerenceMonaghan Concierge–CentreManagement10 AdeleHockey Concierge–CentreManagement10 SandraDeBeus Concierge–CentreManagement10 GeorgeChedra SeniorBusinessSystemInfrastructureSpecialist10 JanBennett Concierge–CentreManagement10 BarbaraCrossman Concierge–CentreManagement10 CatherineRowan AccountsPayable–CentreManagement10 MaryStamell ConciergeManager–CentreManagement10 JanetteKloess AccountsPayable–CentreManagement10 JasonBwin EnterpriseSystemsSpecialist10 JonMann FacilitiesManager–CentreManagement10 TimKemp FacilitiesAssistant–CentreManagement10 MartinFlanagan Electrician–CentreManagement10 BradleyWatson ApplicationsSupportManager10 TitaTripoussis Concierge–CentreManagement10 RobertMoran FacilitiesSupervisor–CentreManagement10 KarenTempleton PersonalAssistanttoExecutiveGeneral

ManagerLeasing10 PeterHuddle AssetGeneralManager10 TonyIllic PurchasingOfficer10 MantouraZaidan LeaseAdministrator10 MargaretPeck Concierge–CentreManagement

United States47 RobertoSanchez Manager43 LouisSherman Engineer40 NaomiKilburn AdministrativeAssistant37 SaundraAnshutz Specialist37 SherryJones SeniorGeneralManager36 RobertBittke MaintenanceEngineer


*service length


36 MarilynSlipe GeneralManager35 SusanPavelka AdministrativeAssistant35 TiburcioJacinto MaintenanceEngineer33 JohnKershaw MaintenanceEngineer32 NestorSanguinetti SeniorVicePresidentDesign31 JoseSanchez MaintenanceEngineer31 EtelvinaPerez MaintenanceEngineer31 TimothyDowney GeneralManager30 LarrySchramm MaintenanceEngineer30 RichardKaminski MaintenanceEngineer30 NunoXavier ChiefEngineer30 ManuelXavier Maintenance30 AntonioRamos Maintenance29 WayneKing Maintenance29 CarlosRodriguez MaintenanceEngineer29 IgnacioAnaya MaintenanceEngineer29 JohnGorham MaintenanceSupervisor28 PatriciaPavia AdministrativeAssistant28 PeterLowy ChiefExecutiveOfficer27 JohnGoodwin VicePresidentDevelopment27 RobertGrau Clerk27 MichaelHirschbein VicePresident27 AngelMarrufo ChiefEngineer27 NormanAlthen ChiefEngineer27 MichaelHasse Maintenance27 BeckyDuffie AdministrativeAssistant26 RichardGreen ViceChairman26 HermesMejia Manager26 TerriTerpstra AdministrativeAssistant26 PeterDisciascio ChiefEngineer26 ChristopherOlson SeniorManager26 PatriciaEarls AdministrativeAssistant26 DavidPoe MaintenanceEngineer26 DimitriVazelakis ChiefOperatingOfficerGlobalDesign&

Construction26 AliceMcCloghry AssistantGeneralManager25 BerniceWesterholt Specialist25 RoryPacker AssociateGeneralCounsel25 ReynanTocol MaintenanceEngineer25 LindaBaker AdministrativeAssistant25 JimmieWalker ChiefEngineer25 DonaldMarsh ChiefEngineer25 JamesGriswold ChiefEngineer25 MaryHolstein AdministrativeAssistant24 JimBess SeniorManager24 JuanTorres MaintenanceEngineer24 WillisConley Technician24 StevenCaiello SeniorVicePresidentTenantCoordinator24 DavidJordan Technician24 MarkNorthern RegionalVicePresident24 JudithBijlani CustomerService/MarketingDirector24 JohnEndicott VicePresidentPartnerRelations24 ConradoNunez Maintenance24 StevenGallo Maintenance24 MaryLothe PropertyAccountant24 HenryFerrera ProjectArchitect24 DonaldHigginbottom MaintenanceSupervisor23 KimJohnston MaintenanceEngineer23 JuanMendez MaintenanceEngineer23 MichaelCavender GeneralManager23 ChristopherMcDonald ChiefEngineer23 PeterGonzales MaintenanceEngineer23 RaudelPerezchica MaintenanceEngineer23 HowardMorrow LeasingRepresentative23 MarkValkenaar Maintenance23 ThomasSheridan MaintenanceSupervisor23 TrevorThompson DirectorofPlanning

23 TimothyLowe ExecutiveVicePresident–Develop/Commer23 RobertKasperski SeniorVicePresidentConstruction22 OlgaOrtega Coordinator22 JohnSiegel MaintenanceEngineer22 JoseArevalo MaintenanceEngineer22 GerardoResendez MaintenanceEngineer22 WendyProvencher Coordinator22 PamelaLeslie ShoppingConcierge22 RobertDurnan GeneralManager22 MarciaColwell Reception22 MaryHopkins AssistantGeneralManager22 AlbertKroll Engineer21 MarilynRutherford VicePresident21 RobertKoys Director21 RogerPorter ExecutiveVicePresident21 JuliaNagy AdministativeAssistant21 SheriPerry Specialist21 BrianLawless MaintenanceEngineer21 SusanStone Specialist21 MichelleWang FinancialAnalyst21 ScotTurcotte GeneralManager21 RoyMcDonald Maintenance21 DonnaMau Maintenance21 MichaelBonaiuto SecurityDirector21 RobertOberting CentralPlantTechnician21 SilasCastaneda Engineer21 JamesWalker Engineer20 ArnoldMayersohn AssociateGeneralCounsel20 HowardGodfrey MaintenanceEngineer20 JudyTuttle VicePresident20 RickyBoyd MaintenanceEngineer20 JamesSoellner Technician20 AndrewSelesnik Director20 MichaelTsakalakis RegionalManager20 JeriL.Erling SeniorDirector20 RandallSmith ExecutiveVicePresidentInvestor&Retail

Relations20 HassanFakhar VicePresidentConstruction20 KeithLaird ExecutiveVicePresident–LeasingOperations20 RonaldSchmidt ChiefEngineer20 JackCarls ChiefEngineer19 AndrewRivard Manager19 CasandraKorcak Specialist19 HarryScholz MaintenanceEngineer19 PatrickMadden GeneralManager19 AdamKamlet GeneralManager19 RonaldBurns VicePresident19 NapoleonMartinez Manager19 MichaelBishop MaintenanceEngineer19 JacquelynHausmann ProjectAssistant19 FrankCampbell Maintenance19 GabinoMedrano Engineer19 JoyceHenkey SpecialtyLeasingRep19 JohnThompson ChiefEngineer19 RonaldMiller SecuritySupervisor19 MichaelGuerrera Maintenance19 JamesRaymond LandscapeSupervisor19 CynthiaKellems RegionalSpecialtyLeasingManager19 TerryCasey Maintenance19 JoseDeGuzman Engineer19 ElenorDunkelberger CustomerSvcRep19 AllenAikens VicePresidentLeasing18 RhondaWarmuth Manager18 ScottGrossman ExecutiveVicePresident18 CrispinKagahastian ProjectDesigner18 CamilleFisher AdminstrativeAssistant18 LawrenceGreen SeniorVicePresident


*service length


18 GregSchultz VicePresident18 WilliamMcGuire ChiefEngineer18 GermanVazquez Engineer18 MichaelMiller ChiefEngineer18 StevenLandorf Maintenance18 BerthaManiaci ManagerofOperations18 ScottReinstein DevelopmentDirector18 JoseGomez Maintenance18 CarolSherman ShoppingConcierge18 ClydeAhl GeneralManager18 RobertGedarovich GeneralManager18 PoomChantha DirectorofBrandAlliance18 DavidBrown ChiefEngineer18 NoheAlonzo-Quiroz Maintenance18 LaureneOver AdminstrativeAssistant18 JamesMartindelCampo GeneralManager18 VictoriaVillanueva PropertyAccountant18 JamesStraus VicePresidentLeasing17 EduardoRodriguez MaintenanceEngineer17 MarenScaccia AdminstrativeAssistant17 MarkStefanek ChiefFinancialOfficer17 JohnWiddup ChiefOperatingOfficer17 EdwardStritzel Specialist17 JamesMcCray MaintenanceEngineer17 SharynJeter Director17 GavinQuinn SeniorFinancialAnalyst17 JonathanBradhurst SeniorVicePresident17 AmaliaRohr ShoppingConcierge17 SandraPerry SpecialtyLeasingRep17 RolandRoss OperationsManager17 DarrellSuiter Maintenance17 MaryHarris MarketingDirector17 FrederickGehringer VicePresidentGlobalE-Business&CIO17 ScottVyskocil GeneralManager17 JeffreyBerger GeneralManager17 HowardConder ChiefEngineer17 RobertClarke GeneralManager17 RaymondJimenez Engineer17 EdmundGibbons Engineer17 ThomasHansen SecuritySupervisor17 PamelaCoultard ShoppingConcierge17 RogerBurghdorf SeniorExecutivePresident–Leasing17 JosephMampe CustomerService/MarketingCoordinator17 GeorgeGomez Maintenance16 AlfonsoGalvan MaintenanceEngineer16 GerardCecci RegionalVicePresident16 CraigTanouye SeniorVicePresidentGroupBusinessReview&

Audit16 LourdesOrtiz ShoppingConcierge16 RuebenPonce MaintenanceEngineer16 LucyCisneros AdministrativeAssistant16 RubenPerez VicePresident16 StevenDumas SeniorVicePresident16 KeithaMills Director16 DeniseGillion SeniorAccountant16 MichaelJones Director16 DavidReitz VicePresidentArchitecture16 MistyRodriguez Director16 AntonyRitch SeniorVicePresident16 MarleneInderbitzin Specialist16 SherryPeterson Specialist16 RoxanaPombo Director16 PaulaDobin RegionalManager16 ClarenceSpeerIII Off-DutyPolice16 LawrenceMartin GeneralManager16 JamesMcConnell SecuritySupervisor16 WalterEmrich Maintenance

16 ManuelSablan Maintenance16 AnitaWilliamson AdministrativeAssistant16 CherylPontius SpecialtyLeasingManager16 SilvestreMouraIII Maintenance16 JamesKierce SecuritySupervisor16 JamesHarris Maintenance16 PatriciaLassen Maintenance16 LeesaAshley LegalDeptManager16 AudreyMcLaurin SpecialtyLeasingRep16 JamesRosene ChiefEngineer16 TheresaGiggar AdministrativeAssistant16 RichardSmith SecurityOfficer16 LuisCanchola Maintenance16 IsabelSchulman SpecialtyLeasingRep16 DiegoLoza ChiefEngineer16 AnnmarieSultzbach AssistantGeneralManager15 SueBaker ShoppingConcierge15 JudithWodarczyk ShoppingConcierge15 JeanetteMorgan Coordinator15 JulietVergara VicePresidentHumanResources15 GenelleTate AdministrativeAssistant15 MielReveche HRISAdministrator15 JessicaDinglasan Director15 MichaelSheller VicePresidentArchitecture15 KavitaBheda Director15 ReneeMallon AdministrativeAssistant15 ConstanceBrank AdministrativeAssistant15 AndreaBoitnott GeneralManager15 AnthonyVerostko SeniorLeasingManager15 GeorgeRugys MaintenanceEngineer15 ArthurGomez ChiefEngineer15 VictorDavis SecurityCrewLeader15 JohnHarbold SecurityOfficer15 MikelHansen GeneralManager15 JamesKenny SeniorLeasingManager15 JamieBozarth RegionalSpecialtyLeasingManager15 JosephBautista ProjectDesigner15 DouglasAddis SeniorVicePresident–CentreManagement15 ErnestPowell Maintenance15 TaurinoAvalos Maintenance15 JanycesHack AdministrativeAssistant15 StaceyMarston SpecialtyLeasingManager15 KimberlyAnderson CustomerService/MarketingCoordinator15 RobertSimmons SecurityOfficer15 PeterWanco SecurityOfficer15 RobertPeters Maintenance15 RussellSpadt Maintenance15 JackBrown SecurityOfficer15 KellyPrice RegionalVicePresidentAirportManagement15 MargaretStephens VicePresidentMarketing15 ChrisBarnett SeniorVicePresidentDevelopment14 JudithSmith AdministrativeAssistant14 RasoolZiglari Director14 RosaCampos AdministrativeAssistant14 PatriciaSokol AdministrativeAssistant14 StevenCase MaintenanceEngineer14 KimberlyBrewer VicePresident14 LawrenceDalton SeniorDirectorofArchitecture14 DianeD’Abato Receptionist14 VanessaCarpenter Manager14 AnthonySanto VicePresident14 ClodaghMcConville AdministrativeAssistant14 HannahHieu VicePresidentArchitecture14 GenaGilmore ExecutiveAssistant14 ElizabethAdato LeaseAnalyst14 JonathanLauren SeniorVicePresident14 KevinSt.John MaintenanceEngineer


*service length


14 LauraKatayama SeniorNegotiator14 RussellGoudy Manager14 DonaldLenart Specialist14 BonnieMiller ShoppingConcierge14 JuliaSmith Clerk14 JoseTorres MaintenanceEngineer14 AnneZettel Paralegal14 KurtReddick GeneralManager14 EleazarSerrano MaintenanceEngineer14 MattCameron MaintenanceEngineer14 FooChan MaintenanceEngineer14 JimmyGarris ChiefEngineer14 IbsonLindsay MaintenanceEngineer14 KaiMa MaintenanceEngineer14 MichaelMcIntosh GeneralManager14 ScotVallee Director14 Ky-WonLee VicePresidentFinance14 JoyceChung SeniorShoppingConcierge14 RosanneRichard Receptionist14 LoreneChappell SpecialtyLeasingManager14 CharlesCawthorne SecurityOfficer14 SuzanneOlsen AdminstrativeAssistant14 StevenRouman VicePresidentLeasing14 NancySnyder OfficeServicesCoordinator14 AlfredoCarpio Maintenance14 JosephKurtz ChiefEngineer14 PeterKoenig VicePresidentLeasingFinance14 MaryLankester MarketingDirector14 LawrenceCostello DevelopmentDirector14 WilliamMiller GeneralManager14 JEagleson VicePresidentManagementEastCoast14 MonikaOrmond AdminstrativeAssistant14 RobertMcKinney Maintenance14 RonaldWynkoop CentralPlanTechnician14 RobertEvans Maintenance14 ChristopherCharpentier LeasingManager14 BettyHayes ShoppingConcierge14 NancyCounselor ShoppingConcierge13 SandraStankevich Receptionist13 TimothyGeiges GeneralManager13 JoanHanson HRManager13 AlexisOkubo Specialist13 GregoryMcCance Manager13 JefferySamson GeneralManager13 RockyFerrari MaintenanceEngineer13 JamesAgliata VicePresident13 SenoviaBonner ShoppingConcierge13 DeepaPatel Director13 GregoryFitchitt VicePresident13 MehrnazEskandani Director13 DavidStuder MaintenanceEngineer13 KathleenAdams ExecutiveAssistant13 ShannonWestmore VicePresidentLeasingLosAngeles13 LisaShelley Paralegal13 DanielPureco MaintenanceEngineer13 JoyceRoberts VicePresident13 TinaTufts RegionalDirector13 DonielleLewis SeniorManager13 TyMiller AssociateDirector13 KarenMiller Manager13 KristenPash VicePresident13 MehulMehta Director13 DeonLyons DeskSupportAnalystII13 GaryKarl ExecutiveVicePresidentOperationalServices13 MichaelMoore Off-DutyPolice13 LouisettePelletier SeniorShoppingConcierge13 DonnaKudrick SpecialtyLeasingManager

13 SilvanoSanchez ChiefEngineer13 WilliamHeitman VicePresident13 VirginiaPowers Receptionist13 MazenAl-Sadat GlobalTechnologyManager13 BarbaraKnezevic PropertyAccountant13 RobertWaller VicePresidentSpecialtyLeasing13 CristobalBernabeBahena Maintenance13 WandaChicos ShoppingConcierge13 RussellWellington SecurityOfficer13 WilliamStratton ChiefEngineer13 AsleySnape Maintenance13 MariaGonzalez SecurityOfficer13 TereasaEdwards LeasingRep13 ArsenioBarrera Maintenance13 VictorVillalpando CustomerServiceRepresentative13 BeverleeScalise CustomerServiceSupervisor12 GustavoRamos Director12 JohnKavalek Director12 VenturaCornejo Specialist12 JamesAltschul OfficeCoordinator12 NancyOberman ShoppingConcierge12 StephenHamilton VicePresident12 LeeSterling RegionalDirector12 LieselotteMerck SeniorProjectDesigner12 SungKim SeniorDirectorofArchitecture12 BettyDuffy VicePresidentArchitecture12 MooMar DeskSupportAnalystII12 SarahVasquez SeniorVicePresident12 MiriamRolon AdministrativeAssistant12 VernonWhissel Mananger12 LisaWilson AdminstrativeAssistant12 CristinaCardona ShoppingConcierge12 RonalynWentz AssistantGeneralManager12 LisaCowellShams ExecutiveVicePresidentGovernmentAffairs12 ToddStar SeniorVicePresident12 JohnChou Director12 RobertaCygan ShoppingConcierge12 AntoinetteScardina ShoppingConcierge12 NancyEvans Receptionist12 GaryBillock Manager12 JohnVanSchoor Manager12 MaureenEdmisten Manager12 LisaSusanto Manager12 KathyDurr HRRep12 BarneyAustin MaintenanceEngineer12 TamraBower Manager12 JohannaGomez AdminstrativeAssistant12 RupertoFlores Specialist12 MehranMashayekh Director12 SoledadCalderon Associate12 GenevieveChristensen Director12 NancyGarrison Clerk12 LindaCorbin AdminstrativeAssistant12 LindaStone Specialist12 TasiaCraft AdminstrativeAssistant12 TerryWalton GeneralManager12 SilverioRuiz SecurityOfficer12 RobertRak MaintenanceSupervisor12 JayColeenHechanova ContractsAdministration12 DianePew GroupSpecialistLeasingManager12 GregoryDoble Engineer12 SusanNisbet DirectorofCorporateFacilities12 BridgetteUelman PropertyAccountant12 SylviaMartin-Vierra Receptionist12 KarenGombosi SpecialistLeasingManager12 RandyMiguel SecurityOfficer12 JohnHebert Maintenance


*service length


12 AprilCarli MarketingCoordinator12 ShirleyMaggiore PropertyAccountant12 JohnColby ChiefEngineer12 RichardAndrews Engineer12 LaurelMunson ExecutiveAssistant12 SabronPruitt PayrollAdministrator12 JamesHansen GeneralManager12 CarlJones CentralPlantTechnician12 AndrewSchulman VicePresidentLeasingNortheast12 StevenStanage DirectorofDevelopmentAccounting12 RichardMorris SecurityDirector12 AntonioBernardo Maintenance12 JonaeArmstrong GeneralManager12 NadineMarlette ShoppingConcierge12 LloydEddings ShoppingConcierge12 AdeleBaxendale ShoppingConcierge12 JohnSchroder ChiefOperatingOfficerDevelopment,Design&

Construction12 MarioManzanarez MaintenanceSupervisor12 WilmerLopez Maintenance12 MichaelLongo Maintenance12 BarbaraRethas ShoppingConcierge12 StevenParker DirectorofStrategy&MarketResearch12 WilliamSchu SeniorGeneralManager12 NancyBlack ShoppingConcierge12 VictorCaceres SecurityDirector12 PaulPriceJr. SecurityOfficer12 AnthonyAlessi DevelopmentDirector12 RonaldGarrison MaintenanceSupervisor11 MichelleHaviv Director11 CarlBackman AdministrativeAssistant11 RonCline MaintenanceEngineer11 JamesWard SeniorManager11 CharlesBixby Manager11 CatherineFlores Specialist11 AngelitoMallari PayrollTaxAccountant11 LucyRoss Receptionist11 NorineVolker Receptionist11 JohnHealy VicePresident11 TaraMartin RegionalDirector11 LaraSaab AsstGeneralManager11 PhillipSt.Pierre RegionalVicePresident11 CoreyCarr ProjectManager11 RubyBarr Coordinator11 MaryWiniarz ShoppingConcierge11 CeciliaCrisologo AdministrativeAssistant11 CatharineDickey ExecutiveVicePresident11 HeatherAlmond SeniorGeneralManager11 SelinaBartassian Manager11 RayLuyckx MaintenanceEngineer11 NicholasSanguinetti AssistantSuperintendent11 MatthewMorgan VicePresidentArchitecture11 JoseSerrano MaintenanceEngineer11 JulieAnnGatchalian Specialist11 EricWilson VicePresident11 ElizabethSatterthwaite SeniorVicePresidentDeputyGeneralCounsel11 MichaelO’Day Maintenance11 WilliamLo ProjectArchitect11 TheodorBejnerowicz SecurityDirector11 CheriseDovi PropertyAccountant11 MelvinSpringer SecurityOfficer11 PamelaKushner SeniorFinancialAnalyst11 EricAlmquist GeneralManager11 AmyO’Leary SpecialtyLeasingManager11 KathleenNakamoto PropertyAccountant11 JanetBurton SeniorShoppingConcierge11 AllisonClark SecuritySupervisor

11 RobertWahlquist GeneralManager11 CarlaKimmel ShoppingConcierge11 EuniceHicks Receptionist11 JacquelineKing DirectorofLeasingAdministration11 WilliamLucey Maintenance11 RafaelZavala ManagerBusinessIntelligence11 RomanCamacho Maintenance11 NormanHilario NationalProductionSpecialist11 JohnGurgel Maintenance11 NinaKiel ShoppingConcierge11 JoanneBrosi AssistantGeneralManager11 PatriciaWoods AdministrativeAssistant11 DoloresSeely AccountingClerk11 SusanHaynes NationalCustomerServiceManager11 DianeTesla SeniorShoppingConcierge11 DebbieVavrina ShoppingConcierge11 ErvinHorton SeniorShoppingConcierge11 EveStout AdministrativeAssistant11 KeithRay ExecutiveVicePresident–

Development,Design&Construction11 DonaldBrenchak Maintenance11 StevenLyu ProjectManager11 MollieDoyle GeneralManager11 GuillermoMendoza Maintenance11 CaryBustamante ConstructionAccountant11 VictorCarias Maintenance11 AnthonyRitch SeniorVicePresidentDevelopment10 StephenFluhr DirectorDevelopment10 JillMaresh Manager10 KenHuang Architect10 ChristineMiller AdministrativeAssistant10 LauraGonzales Manager10 LaurieNoyes SeniorGeneralManager10 RichardChung GeneralManager10 MarySargent ShoppingConcierge10 AudreyHensley SeniorManager10 RichardCallahan ShoppingConcierge10 KathySeely SeniorManager10 JohnFleming VicePresidentDevelopmentFinance10 TeddBoli MaintenanceEngineer10 LisaAbram SeniorManager10 ToddFalduti GeneralManager10 MatthewEhrie RegionalVicePresident10 PhilipOkada SeniorManager10 RonaldTwardowski Manager10 TerryRobinson MaintenanceEngineer10 MaryDunn Manager10 JerryWhite Superintendent10 CarlosLuna MaintenanceEngineer10 MaritzaGodina Coordinator10 MaryHough AssistantProjectManager10 JesusRamirez Maintenance10 JaniceReeves Dispatcher10 MaryHuber AdministrativeAssistant10 PaulDarrow Engineer10 AngelicaGuinan PropertyAccountant10 BradleyClark Maintenance10 DavidTamisiea ChiefEngineer10 StacyDargan SecurityOfficer10 PedroAguirre CentralPlantTechnician10 VictoriaHoag CustomerServiceRepresentative10 DavidWalker AssistantGeneralManager10 LauraCalvey CustomerService&PromotionsManager10 PhillipChamberlain VicePresident10 WilliamKnierim MaintenanceSupervisor10 ShaylaHiller PropertyAccountant10 CharlesAcker Maintenance


*service length


10 AlfredoNisperos SecurityOfficer10 NancySabadie LeasingRepresentative10 CharlesDailey SecuritySupervisor10 JoseMartinez SecurityOfficer10 DavidDoll SeniorExecutiveVicePresident–Development10 JohnCrivello CustomerSvcRep10 NancyNance LeasingManager10 BartolomeoFrabotta DirectorofI.T.

United Kingdom25 DenisCarruthers DirectorNationalManagement&Marketing21 KathrynCooper ConciergeAssociate–CentreManagement21 PeterSmithyman MaintenanceTechnician–CentreManagement21 JimmyHickey MaintenanceTechnician–CentreManagement21 ThomasJohnston MaintenanceTechnician–CentreManagement20 JaneMillward ConciergeAssociate–CentreManagement19 PaulaWyllie RetailManagerDesign19 TinaChandler PAtoDirectorofShoppingCentreManagement19 PearlHouston AccountsAdministrator–CentreManagement19 AndrewTong FinancialController18 JaynePayne ConciergeAssociate–CentreManagement18 IanJones Builder–CentreManagement18 ElaineWilson AccountsAdministrator17 PaulaPorter TeamCoordinator17 MichaelGutman ManagingDirectorUK/Europe17 ShaunStokes AssistantFacilitiesManager–Centre

Management17 JohnBrindley Painter–CentreManagement17 PeterKing MaintenanceTechnician17 BillGiouroukos DirectorofOperations16 CharmaineDavison PAtoManagingDirector&ChiefFinancial

Officer16 PeterMiller ChiefOperatingOfficer16 RogerLevesley NationalLeasingManager16 JohnBurton DirectorDevelopment16 PeterHugh DevelopmentDirector15 ColinBadger Painter–CentreManagement15 AnthonyWoerner Waterfront/Maintenance14 HeatherEwing CentreAdministrator14 KeithMabbett GMLeasingProjects14 TraceyWilliams PersonalAssistant14 ChristopherJackson ElectricalEngineer–CentreManagement14 JasonForbes ConceptDesigner14 PaulButtigieg GeneralManager,Centres13 CarlWilliams ElectricalEngineer–CentreManagement13 RobertBinns ProjectManagerLifelineServices13 MarleneCollins Administrator–CentreManagement13 PaulCarter LeasingExecutive13 IainJohnstone DevelopmentDirector12 BrianMackrill DirectorFinance12 PaulWilshere ShopDeliveryCoordinator12 DavidChare ProjectManager12 ElainKivlehan-Gallagher TeamCoordinator–RetailDesign11 NeilMacLure SeniorDevelopmentExecutive11 DannyShoosmith Handyman–CentreManagement11 CatherineBray AccountsAdministrator–CentreManagement10 KatieLythgo ProjectExecutiveStratford10 GrahamJelf MaintenanceTechnician–CentreManagement10 RaymondWright Maintenance–CentreManagement10 StephenWood DevelopmentDirector10 StephenBull Maintenance–CentreManagement10 SimonCochrane DesignDirector10 LindaHamlyn ConciergeAssociate–CentreManagement

New Zealand29 LorraineGatiss SeniorCentreManager29 IlmiPilkington LeasingExecutive28 KenIngle FacilitiesManager–CentreManagement26 EvelynSmith AdministrationManager–CentreManagement25 AnnRobertson NationalHumanResourcesManager24 ValGriffin FacilitiesManager–CentreManagement21 NizamJailabdeen FacilitiesManager–CentreManagement19 JodineMills NationalAdministrationManager17 TonyaCarter GeneralManagerLeasing10 ToruUpiri MaintenanceOfficer–CentreManagement16 PatFarrington RegionalManagerShopOpenings&Upgrades16 KimWhyte FacilitiesManager–CentreManagement15 SimonMore SiteManager/ConstructionDesignManager16 JanetRussell AdministrationManager–CentreManagement16 CliveMackenzie GeneralManagerDevelopment14 JanetKiddle-Saggers AdministrationManagerBrandSpace15 ThomasSamuels FacilitiesManager–CentreManagement15 TaniaGrover AdministrationManagerLeasing15 KarenBranks CrecheSupervisor–CentreManagement15 DarrenHealy FacilitiesManager–CentreManagement15 AtholVivier NationalProjectsManager14 SiosaiaMaka MaintenanceOfficer–CentreManagement14 EmmaThompson LeasingExecutive13 RichardHarding MaintenanceOfficer–CentreManagement13 MurrayTelford ManagerSpecialProjects13 LindaTrainer GeneralManager–CentreManagement&

BrandSpace13 DavidLlewellin FacilitiesManager–CentreManagement13 DarrenEllis GeneralManagerConstruction13 DanielPacker CustomerServicesSupervisor–Centre

Management13 CostaEvangelidakis MaintenanceSupervisor–CentreManagement13 ArnaRobertson CentreSecretary13 AlanDevlin MaintenanceSupervisor–CentreManagement12 KayJones Receptionist12 GraemeHeap AssetAnalystDevelopment11 PaulGregory SpecialProjectsArchitect11 MaureenSaunders CustomerServicesSupervisor–Centre

Management11 LynleyMcCormick MarketingManager–CentreManagement11 LouiseTregidga PersonalAssistanttoDirector11 KeithGordon FacilitiesManager–CentreManagement11 KarenHarvey PropertyAccountingManager11 JanWalker SpecialProjects–CentreManagement11 DebraMcGhie NationalPRCoordinator11 CarolineKotoisuva CentreSecretary11 AllanLockie DevelopmentManager10 Sione(John)FonuaValoa MaintenanceAssistant–CentreManagement10 RichardBelcher ContractsManager10 JulianRickard ConstructionRiskManager10 SandraMika SiteOfficeManager,Construction10 AileaMartin SeniorRetailDesignManager10 PaulWood ProjectManager,Construction10 MoniqueThomson BrandSpaceRetailSalesExecutive10 JanePoole NationalBrandSpaceManager10 NuniaSokia AdministrationManager–CentreManagement10 PaulDomancie ConstructionSiteManager10 GabrielleBevin-Smith RetailDesignTeamLeader10 GrantWong ProjectManagerLeasing10 WarrenAvery NationalITManager10 PhilipMassam GeneralManagerFinance10 JustinLynch DirectorNewZealand


*service length

1959In July 1959 John Saunders and Frank Lowy opened their first shopping centre – Westfield Plaza in Blacktown.With 12 shops, two department stores and a supermarket, people flocked to see the plaza, which newspapers of the day described as ‘the most modern American-type combined retail centre’.By the end of that year Westfield Plaza was established as the commercial hub of Blacktown’s 100 or so shops, and people from all over the area were drawn to the ‘progressive shopping centre’.

1960Westfield was incorporated in June 1960, and shortly afterwards, Saunders and Lowy issued a prospectus for its listing on the Sydney Stock Exchange.In September Westfield Development Corporation Ltd was floated with the issue of 300 000 ordinary shares at a price of five shillings each.1961The first purpose-built centre, funded by the recent float, opened at Hornsby at a cost of £345 000. With 22 stores, it played a major role in attracting residents to the area.

1962–66Three more centres opened in Sydney by 1962, with another three under development. In 1966 the first branded centre opened at Burwood with the now familiar red Westfield logo.

1967–69Westfield expanded interstate with the opening of Toombul in Brisbane, followed by Doncaster in Melbourne in 1969.

1970Land was purchased on the edge of Sydney’s CBD, construction got underway and, in 1973, work was completed at Westfield Towers, still the Group’s global headquarters today.

1970–76Growth continued apace in Australia, with centres expanding and opening across Sydney, Brisbane and Melbourne including Indooroopilly (Brisbane), Liverpool and Parramatta (Sydney) and Airport West (Melbourne).

1977Westfield entered the United States with the acquisition of Trumbull, Connecticut.

1979Capital reorganisation of Westfield Limited, with the establishment and listing of Westfield Holdings Limited and Westfield Property Trust to meet changing trends in the capital market.

WestfieldPlaza,Blacktown,Sydney WestfieldTowers,Sydney

19591960

Westfield milestones: a Journey over 50 years

The evolution of the Westfield Group has been a steady progression over the past 50 years. Here are just some of the milestones along the way.

WestfieldTrumbull,Connecticut,US

1970


1980Three centres were acquired in the United States in California, Michigan and Connecticut.

1982Westfield Trust was floated on the Sydney Stock Exchange as a successor to Westfield Property Trust.

1981–84Redevelopments and new centre openings in Melbourne and Brisbane.

1985In a series of firsts, the Group undertook a major redevelopment at Westside Pavilion, Los Angeles, after demolishing most of the existing centre. The new mall featured the first rooftop carpark in the United States, and was the drawcard that finally brought department store Nordstrom to Los Angeles.

1986Westfield made business headlines when it outbid other parties to successfully acquire three centres in the Macy’s transaction. The acquisition included the powerhouse centre Garden State Plaza in Paramus, New Jersey.

1987After 30 years of partnership, John Saunders relinquished his active management in Westfield, stepping away from the business entirely in 1990. New centres opened at Chatswood and Eastgardens in Sydney.

1992–93Major redevelopments were completed at Doncaster (Melbourne), Liverpool and Miranda in Sydney, which on completion became Australia’s largest shopping centre.

1994Westfield tripled the amount of space it managed in the United States with the US$1 billion CenterMark transaction, which saw the Group acquire 19 centres across America.

1994–96Portfolio expansion continued in Australia with redevelopments, openings and new centres coming under the Group’s management.

1996Westfield America Trust was listed on the Australian Stock Exchange, enabling Australian investors to make direct investments in the US retail property market.

1997Westfield entered New Zealand after assuming management of the St Lukes portfolio.

1998Westfield acquired the US$1.4 billion TrizecHahn portfolio, adding a further 12 properties to the Group’s Californian portfolio, making it that state’s biggest shopping centre operator.Following the US portfolio growth, a significant branding opportunity became apparent and every centre owned by the Group in the United States was branded Westfield.

2000In New Zealand the Group acquired the NZ$920 million St Lukes portfolio, branding the centres Westfield.Westfield entered the United Kingdom with the acquisition of a centre in Nottingham, followed by the establishment of a joint venture interest in nine centres in prime town centres and urban locations. In Australia, the Group was a major sponsor of the Sydney 2000 Olympic Games.

2001The Group acquired Sydney’s Centrepoint shopping centre – the home of the iconic Sydney Tower and site of the future Westfield Sydney City.

2002Nine shopping centres were acquired in the United States in the US$756 million Richard E. Jacobs transaction.In the same year, the US$2.6 billion Rodamco transaction added another 14 malls to the Group’s American portfolio, and consolidated its position as one of the largest retail property groups in the United States.

2003Westfield acquired the $1.9 billion AMP Shopping Centre Trust, adding interests in a further nine high quality shopping centres.The Australian portfolio grew further with the strategic acquisition of Sydney Central Plaza in the city’s CBD.

2004Westfield Group was born when Westfield Holdings, Westfield Trust and Westfield America Trust merged in the company’s most significant corporate restructure, creating the world’s largest retail property group by equity market capitalisation.In the same year, an initial interest in White City was acquired in a contested takeover in the United Kingdom, paving the way for the future Westfield London.As part of the £1.1 billion Chelsfield transaction the Group also acquired interests in a number of key UK properties, including Stratford City.

2004–2007Flagship centres opened at Bondi Junction in Sydney, Century City in Los Angeles and San Francisco in California while redevelopments continued throughout the Group’s global portfolio (more than 20 since the decade’s beginning) peaking in 2007 with the completion of five projects in four countries in just four weeks.

2008The United Kingdom’s largest urban shopping centre opened at Westfield London. The 300-store, £2.1 billion flagship centre attracted more than 23 million visitors in its first year.

2009The Group made good progress on its iconic projects at Stratford City and Sydney City.JohnSaundersandFrankLowy WestfieldAmericaTrustIPO

20001990

1980

WestfieldStratfordCity,UK

Westfield Milestones 173


Credits

Key: t = top, c = centre, b = bottom, l = left, r = right

9-10 State Library of New South Wales; 12 State Library of New South Wales; 13 State Library of New South Wales; 15 State Library of New South Wales; 16 from Nothing is impossible: The John Saunders Story by Gabriel Kune, Scribe Publications; 17 courtesy of Frank Lowy; 19 map section reproduced with permission, copyright Universal Publishers Pty Ltd 03/10; 20 t State Library of New South Wales, b Courtesy of Local History Collection of Blacktown City Libraries; 21 Courtesy of Local History Collection of Blacktown City Libraries; 23 t, b State Library of New South Wales; 25 t, b State Library of New South Wales; 27 Courtesy of The Blacktown Advocate; 31 State Library of New South Wales; 32 State Library of New South Wales; 33 National Archives of Australia; 36 National Library of Australia; 39 t National Library of Australia, b National Archives of Australia; 40 State Library of Victoria; 42 courtesy of Frank Lowy; 46 State Library of New South Wales; 48 Fairfax Photos; 49 Fairfax Photos; 56 Newcastle Region Library; 58 Fairfax Photos; 60 City of Sydney Image Library; 61 t Newcastle Region Library, b National Library of Australia; 67 t, b courtesy of the Trumbull Historical Society; 69 t courtesy of the Trumbull Historical Society; 77 Fairfax Photos; 80 Fairfax Photos; 81 Newspix; 95 t, b courtesy of Channel 10; 99 tl reproduced by permission of the Commonwealth Treasury; b Newspix; 101 t Newspix/Samantha Magnusson, c, b Fairfax Photos; 105 l, r from Nothing is impossible: The John Saunders Story by Gabriel Kune, Scribe Publications; 111 b Photolibrary; 117 Corbis; 119 t, b Newspix, c Fairfax Photos; 131 i-stock; 139 t Photolibrary, bl Photolibrary, br Getty Images; 151 tr Newspix, b Fairfax Photos; 168 tr courtesy of the Trumbull Historical Society, bc Fairfax Photos.

Every effort was made to identify sources of the images used in this book. We regret any errors or omissions.

Index 175

index

Page numbers in italics indicate illustrations.

ABP 136ACI 92advertising billboards 37AIG 140Airport West, Melbourne 1–3, 91Albany, NZ 134, 135Allen, Peter 120, 150, 151Allen & Stark Ltd 38AMP building 8AMP Retail Trust (ART) 130AMP Society 98Annapolis, Maryland 134, 135Anthony Hordern 12, 12, 60, 61Apollo 13 108arcades 14, 70Associated Securities Ltd 56Auckland, NZ 112Australia

1960s 36Bicentenary 90population 36

Australian Stock Exchange 27, 32, 33, 56, 108

The Australian Financial Review 109AWA tower 9

Bankers Trust 98, 102, 112bargain basements 47Bay Fair 88bazaars 70Belconnen, ACT 91Bicentenary 90Blacktown 18, 30

1950s 20land purchase 30map of route to 19rail electrification 21retail centre 27Westfield Plaza 26, 26, 27, 38

Blacktown Station delicatessen 6–7, 24

Bloomingdales 146Boards of Directors 154, 155

1970s 571980s 75

Bolte, Sir Henry 53Bond Corporation 80

Bondi JunctionSydney 102, 142, 143, 145

Harbour Room 149, 149Boulevard Hotel, Sydney 58, 59Bradford, UK 126brand 158, 159, 175Bridge Oil 74, 92‘British Made’ 46Broadcom 94Broadmarsh Centre, Nottingham

101, 120Brown, Gordon 122Bucksbaum, Martin 107Bucksbaum, Matthew 107Burwood Shoppingtown 48, 48, 49,

103, 158

Cabramatta, land purchase 30California 106–7, 110Caltex House 30, 31Cambridge Credit Corporation 56capital management 138, 140–1car ownership 36, 70Carbon Disclosure Project 144Carindale, Brisbane 102Carousel, Perth 102, 102, 103cars, importance of 26cash flows 128CastleCourt, Belfast 126, 126CenterMark Properties 98, 100,

106–7, 108, 109, 136centre branding 158Centrepoint 143Century City, LA 132, 133, 143, 149Chadstone, Melbourne 38, 40, 41chainstores 47Chairman’s Review 2010 174–6Channel 10 92charity support 156Charles, Prince of Wales 65Chatswood, Sydney 91, 103Chermside, Brisbane 102, 103, 133,

135Chermside Drive-in Shopping Centre,

Brisbane 24, 38, 38, 39, 52see also Chermside, Brisbane

Clarence Degenhardt and Co 30coach, for the Queen 90coal mining 74coffee lounge, Blacktown 22

Coles 42, 60, 81, 146Coles, Sir Edgar 42, 146Coles, supermarkets 42, 49, 53, 146

Baulkham Hills 43Gosford 43Liverpool 43

Coles Myer 49, 74, 81, 94, 98, 102commercial property development

58, 59commercial television 36community initiatives 156, 157community needs 44, 76, 102, 144construction 51, 120credit squeeze 36Credit Suisse 62Culver City 111Curran Capital Television 94customer focus 51

David Jones 12, 47, 60, 146Debenhams 120, 146debenture issue 36decimal currency 36Dee Why centre 50delicatessen, Blacktown Station

6–7, 24department stores 148

in Australia 12, 52in United States 70

Depression 47, 60Derby, UK 126, 127, 134, 135, 158design 51, 120, 144dining, at the mall 149disabled children 156disaster relief 156diversification 74Doncaster Shoppingtown, Melbourne

49, 53, 53, 91, 103, 135, 142Duelguide plc 124Duggan, Jack 38

Eagleson, Bruce 130East End, London 122Eastern Distributor 59Eastgardens Shoppingtown, Sydney

78, 79, 83, 91Elizabeth II, Queen 90Empire Brent 23

‘family of five’ 49

Farmer & Co 12, 13, 48, 49, 60Federated Department Stores 133Ferguson, Rob 98Figtree shopping centre, Wollongong

49, 91financial strategy 51, 62, 63, 138Finkelstein, Ed 88flagship centres 142–3food courts 149Fossey’s 81Fountain Gate, Melbourne 102, 103Fox Hills 111Frank Lowy: Pushing the Limits

(Margo) 100, 101Furman, Roy 155

GalleriaCalifornia 133Perth 102

Garden State Plaza, NJ 88, 89, 142General Growth 98, 106–7, 108,

110General Motors 140General Property Trust 131Glenfield 113global financial crisis 128, 135, 138,

140–1, 175–6GMH site 78Goldman Sachs 106, 107, 110Goldsmith, Lord 155Gonski, David 94, 155Gowings 47Grace Bros 12, 60, 80, 81Graf, Erwin 24Green, Philip 148Green, Richard 84, 86, 88, 88, 107,

110, 120obituary 152

growth 45, 49, 50, 62, 641990s 98, 1022000s 130–5not for its own sake 128

Gruen, Victor 70Gruneberger, Peter 88Gucci 143Gutman, Michael 146, 148, 150, 151

H&M 146Harbour Room, Bondi Junction 149,

149


Harold, Richard 120Harvard Business School 158Hellman, Herbert 88Hermes 120, 126Hilmer, Fred 98, 155home ownership 36Hornsby, Sydney 44

Westfield Plaza 32, 36, 36, 44, 44, 49, 103–4

Horton Plaza, San Diego 111housing 22Hungary 1920s 16Hurstville, Sydney 62

redevelopment 91

immigrants 18, 22, 23Imperial Arcade, Sydney 130, 143Indooroopilly, Brisbane 91, 101, 103industry seminars 148Innaloo, Perth 102intensive management 128, 133International Council of Shopping

Centers 51, 158internationalisation 118, 120, 150investment return 35, 49, 56, 64, 74

Jacobs, Richard E 130Joe’s Meat Markets 146John Lewis Partnership 146Johns, Stephen 75, 99, 155Johnson, Boris 148Jordan, Robert 150, 151, 156

Kennerley, Kerri-Anne 95Kent, Paul 30, 32, 36King, John 148Kmart 81Kotara, Newcastle 135

land purchases 30leasing 51, 120Lederer, Andrew 146Lehman Brothers 140Lend Lease 98, 120, 131lifestyle retailing 112Liquorland 81Liverpool, Sydney 103, 133London 120, 121, 122, 123, 124,

125, 126, 143Southern Terrace 149, 149

London & Continental Railways 125–6

Los Angeles 84, 84, 85Lowy, David 57, 68, 75, 88, 88, 90,

151, 155Lowy, Frank 32, 59, 80

appointed to Reserve Bank board 99, 100

Blacktown coffee shop 22CenterMark 107Chairman 155Chairman’s Review 2010 174–6checks out US motels/malls 40on directors 154early life 17, 17on financial crisis 140, 141founder 158joins Northern Star board 94meets the Queen 90as negotiator 125partners with Saunders 18photographs 42, 57, 75, 88, 119,

122, 148on property market 98and Rodamco 136site spotting 146with sons 151on staffing structure 150on strategy 128three entities merge 119verifying credentials 88and WCC 92WestMyer Trust 80, 80works on Trumbull 68

Lowy, John 52Lowy, Margot 90Lowy, Peter 76, 99, 107, 136, 148,

150, 151, 155Lowy, Shirley 90, 150Lowy, Steven 76, 99, 120, 130, 135,

148, 150, 151, 155Lowy Family Group 150

Macy’s 84, 88, 136, 146Malaysia 100Maloney, JJ 26management 51, 104, 120Marcus Clarke 60Marion, Adelaide 91, 103Mark Foy’s 46, 47, 47, 60

markets 70Marks & Spencer 120, 126, 146Matthew Thompson 42McCarthy, Don 148McDowells 60McFarlane, John 155media investment 74, 77, 92, 94Melbourne, Chadstone 38, 40, 41Menzies, Sir Robert 36MEPC 101, 124, 126merchandise

1950s 25British Made 46

Merrill Lynch 110Merry Hill, Birmingham 124, 126milestones 168–9Millstein, Ira 88Miranda, Sydney 49, 91, 100, 103,

142motels 32, 40Mount Druitt, Sydney 102, 103Multiplex 124Myer Emporium 40, 52, 53, 60, 80,

81, 91, 146

National Australia Bank 32New York 88

Neidich, Dan 88, 88Nemes, Emery 40Network Ten Australia 94, 95New Zealand 98, 100, 112, 130News Limited 92Nock and Kirby 60Nordstrom 86, 87, 146Nordstrom, Bruce 87Nordstrom, Jim 87North Lakes, Brisbane 135North Rocks 91Northern Star 74, 92, 93, 94Nothing is Impossible (Kune) 100Nottingham, UK 126

Broadmarsh Centre 101, 120

Ohio 136Olympic Games London 2012 120,

122, 125, 126

parking, on site 14, 26, 38Parramatta, Sydney 91, 100, 103,

133, 133, 142

Parramatta Road 1950s 20Patrick Partners 56Pennant Hills 32Penrith 30Perdon, George 81Petrie, Donald 52Philadelphia Arcade, US 70Philip, Duke of Edinburgh 90The Picadilly 14Pisterman, Walter 75, 153Pitt Street Mall, Sydney 130population growth 76portfolio management 138Prada Group 143projects in Sydney 1962 45promotion 48, 51, 76property development 32

slump 56, 58Prudential Insurance (US) 106, 107

QIC 126quality 128, 143, 158, 160Queen Street skyscraper, Melbourne

59Queen Victoria Building, Sydney 14,

15Queensland 49

Rafferty, Tony 81real estate investment trusts (REITs)

100, 106, 107, 109redevelopment 91, 102–3, 104, 112,

133Redfern, multistorey offices 59regional shopping 76, 110rejuvenation 126residential developments 32retail development 24retailer relationships 146–8retailers 128, 143, 147, 148, 150,

158retailing, and commercial TV 36Reuben, David 124, 125, 126Reuben, Simon 124, 125, 126Riccarton 112The Richard E Jacobs Group 136Rodamco 98, 100, 130, 136, 138Rose, Stuart 148Rouse Company 110, 136, 138, 139Royal Bank of Scotland 140

Index 177

Royal Victoria Place, Tunbridge Wells 124, 126

sale–leaseback arrangements 62San Francisco Centre 133, 143,

143, 149, 152, 152, 153Saunders, John 22, 32, 57, 65, 75

early life 16, 16founder 158meets Lowy 18motel sightseeing (US) 40obituary 105, 105partnership ends 74, 83, 83retail relationships 146Shore Motel 41, 83uninvited guest at Chadstone 40in United States 24, 26, 40, 66and William Street 58, 83

Saunders–Lowy partnership 74, 82–3, 82–3

Schloss, Phillipe 148Schramm, Arthur 88, 88Schwartz, Brian 155service focus 46–7share price 62, 64, 64, 98, 100,

101, 141shares application form 34shoppers 1974 56shopping centre development 56, 74

nearing capacity 59, 66sustainability 144Westfield’s rules 51

shopping centresin 2010 160early 12first in Australia 24, 38rental income 77, 128special focus on 32in United States 24, 70, 136

Shore Inn, Artarmon 40, 41, 83Shore Motel 40, 41Simpson, Jim 18, 24site selection 51Skygarden, Sydney 130, 143Sloan, Judith 155Snowy Mountains Hydro-Electric

Scheme 18, 22social interaction 44, 76South Shore 88

Toombul Shoppingtown, Brisbane 49, 52, 52, 91

Top Ryde Shopping Centre, Sydney 24, 38, 39

Topanga Plaza, California 106–7, 107, 129, 133

Town Hall Station, smallgoods 18training programs 51, 148TrizecHahn portfolio 100, 110, 136,

138Tuggerah, NSW 102, 103Turramurra, Sydney 30Tuxen, Simon 118, 150, 151

UK Shopping Centre Fund 126Ultra-Marathon 81United Kingdom 98, 101, 120

building retail relationships 146United States 95

department stores 133, 136evolution of shopping malls 70mall business 136portfolio growth 74, 84, 98, 131–3,

137regional centres 76research visits 24, 26, 40, 66training 51Westfield goes offshore 56, 66, 83,

84, 84, 85Universal Mall, Michigan 71, 84

Valley Fair, California 111, 142Victoria 49, 53

bushfires 156Vietnam War 36Vue Cinema 149

Wall Street listing 109Waltons 60, 60Warrawong, Wollongong 91WD & HO Wills 78Weiss, Gary 155Wellington, NZ 112West Covina 99Westfield America Trust 100, 107–8,

108, 118Westfield brand 158, 159, 175Westfield Capital Corporation 74,

92, 93, 94

Southern Terrace dining, London 149, 149

Southland, Melbourne 91, 103, 103Spechtenhauser, Hubert 148specialty retailers 148St Ives, Sydney 32St Lukes Group 100, 112, 113, 130staffing structure 150–1Stephen, Kerry 35Stephens, Donald 30, 32, 57, 75,

153Stevens, Reg 57, 75stockmarket crash 1987 74The Strand 14Stratford, UK 126, 135Stratford City, London 120, 122,

123, 124, 125–6, 125, 126, 143Strathpine, Brisbane 91, 103study tours 148Style Pasifika 156suburbs, growth of 36Superannuation Fund Investment

Trust 62superannuation funds 62supermarkets 36, 42sustainability 144Sutherland, Sydney 32Swiss Insurance Group 59Sydney

1958 8–9CBD 30‘grand stores’ 46–7, 46, 47, 60

Sydney Central Plaza 143Sydney City 135, 143, 161Sydney Opera House, excavations 8Sydney Snow 24, 30, 60Sydney Stock Exchange see

Australian Stock ExchangeSydney Tower 143

T&G Insurance 36takeovers 74, 80–1Target 81, 146Taubman, Alfred 70Taubman Company 136Tea Tree Plaza, Adelaide 91, 103television 36Terrace Tower Group 83Thrumbull Shopping Park,

Connecticut 66, 67, 68, 69

Westfield Development Corporation 6, 32

float 32, 32Westfield Group 6, 118–19

powerhouse centres 142staffing 150–1strategy 128

Westfield Holdings 62, 94, 95, 98, 118

annual results 2000 101, 101CenterMark 106–7net profit 1998 100opposes development in western

Sydney 100–1Westfield International 84Westfield International Group 84Westfield Investments P/L 24, 26

move to CBD 30public listing 30, 32, 104

Westfield Pavilion, LA 86–7Westfield Property Trust 62, 76Westfield Towers 58, 59Westfield Trust 98, 102, 112, 118,

130, 136, 150WestMyer Trust 80Westside Pavilion, LA 85, 86, 86White City 124Whitehall Real Estate 106, 108Whitlam Government 66Widdup, John 150, 151William Street, Sydney 58, 58, 59Wills, Dean 98Winchester South 74Winns 60, 61Winter, Leslie 57Wolfensohn, Jim 88, 88Woolworths 47, 60, 146Woolworths Family Centre, Campsie

59workplace giving 156World Trade Center 130, 131

Young, Cliff 81, 81

Zara 146


When Westfield began its life as a public company 50 years ago no-one, least of all its founders, could have predicted it would grow to become one of Australia’s largest and most successful corporations, let alone a world leader in retail property.

The company was formed in 1960 to raise funds to build a shopping centre at Hornsby in Sydney. Today, it has interests in a portfolio of 119 centres in four countries with almost 24 000 retailers and assets valued at $59 billion.

Each decade of the company’s history reveals a story of growth, in the scale of its operations and in returns for investors. Over the 50 years, shareholders in the entities which today comprise the Westfield Group have contributed equity of $19.9 billion and received back some $15.6 billion in dividends and distributions. With a market capitalisation at 31 December 2009 of around $29 billion, some $25 billion of wealth has been created for Westfield shareholders.

Since 1960, original shareholders in the Westfield Development Corporation have received a total return of 27.63 per cent per annum, compared with 10.91 per cent for the All Ordinaries Index over the same period.

The goals I shared in 1960 with my partner, John Saunders, were not grand ones. As young businessmen our objectives were necessarily short term. What kept us awake at night were not dreams of a global business empire, but cash-flow. Could we pay the bills next week? Could we lease that vacant shop? Should we expand beyond Sydney, to Brisbane, or perhaps Melbourne?

From the vantage point of 50 years’ experience I can see that while the scale and complexity of the company has grown enormously, our core business remains essentially unchanged – Westfield aims to provide the best possible environment for retailers to trade and shoppers to shop.

The many changes Westfield has undergone over the years, to our corporate and financial structure, to

our management organisation and our geographical expansion and to the design and type of retail outlets in the shopping centres themselves, have all been made to put us in a stronger position to deliver on this core business objective.

And the changes have been profound. The establishment of the Westfield Property Trust (which subsequently became the Westfield Trust) in the late 1970s to hold the assets managed by Westfield Holdings was at the forefront of a new path for property ownership and management.

During the 1990s Westfield America Trust was created to hold Westfield’s US properties, the first Australian property trust dedicated to investment exclusively in off-shore assets, and for a period Westfield America Inc was created and listed on the New York Stock Exchange.

These moves were the right ones for the times but Westfield has always been prepared to change its structure where necessary, even when the existing structure has historically proven sound. Looking ahead five, 10 and 15 years and anticipating and planning for potential change has been a hallmark of the company.

In the past decade the most significant example of this was our decision to merge the three Westfield entities – Westfield Holdings, Westfield Trust and Westfield America Trust – to create the Westfield Group in 2004. The rationale was to create a global operating and financial structure to match increasing international opportunities, and in so doing Westfield became the largest listed retail property group in the world by equity market capitalisation.

Another example of looking ahead was our decision to expand internationally in the 1970s. John Saunders and I had been frequent visitors to the United States from the ‘60s and drew from that country valuable lessons about the shopping centre business and were inspired by the infectious optimism of its people. Our success in the

Chairman’s review

From the 2009 Annual Report

Chairmans Review 179

United States provided the foundation of confidence for later moves into other markets – New Zealand in 1997 and the United Kingdom in 2000.

The Westfield brand itself is another hallmark of the company. In the beginning no-one ‘branded’ shopping centres and even to us it was simply a sign on our centres, which was shorthand for our humble beginnings, in a ‘field’ in the ‘west’ of Sydney. The first red ‘Westfield’ sign was installed on our Burwood centre in Sydney in 1966.

Today, the Westfield brand sends a simple and powerful message to the world of shopping centre excellence, a message understood by investors, staff, retailers and shoppers in Australia, New Zealand, the United States and United Kingdom.

The Westfield story of the past 50 years has many chapters, and I’ve touched on just some of them here. There’s the consistent financial performance; the ability to adapt; the different capital structures; our international expansion; and, most importantly, the people who collectively over the years have made Westfield the success that it is.

All of these elements of the Westfield story are an enduring source of pride for me and it is both an honour and a humbling experience to lead a company of such standing.

But while our 50th anniversary as a public company will be a time to look back with pride on our achievements, it will be done in the knowledge that our gains are hard won and that we must nurture Westfield’s culture of hard work, attention to detail, careful planning and bold execution, if we are to carry the company forward in the years ahead.

We needed no reminding, but the past couple of years have demonstrated just how unpredictable the marketplace can be.

Fortunately, and despite the unavoidable impact on the Group’s share price, financial discipline and prudent planning meant we were well-placed to withstand the shock of what became known as the ‘global financial crisis’.

In the period before the crisis hit we raised equity and long-term debt. We sold properties that did not fit with our long-term strategic objectives. Having taken these steps, the Group entered this period in a strong financial position. As a consequence we were able to extend our banking maturities during the crisis, and to further protect our position by reducing our capital expenditure, including postponing most of our redevelopment work. We reduced expenses across the business. All of this activity put us in a strong financial position and we are emerging from the crisis with conservative gearing and a strong balance sheet. At 31 December 2009 Westfield’s gearing was 35.8 per cent, with $7.8 billion of available liquidity.

Over 50 years we have confronted several downturns and have emerged from each in a stronger position than we entered it. The credit squeeze of the early ‘60s; the oil shock and inflation of the ‘70s; the boom and bust of the late ‘80s and the deep recession of the early ‘90s. Then came the Asian financial crisis of 1997; the dot-com boom and bust and then the most recent global financial crisis.

Each episode had different characteristics and each taught us lessons about how to deal with the adversity that any long-term business must inevitably confront. Perhaps the most enduring lesson has been the importance of a resilient business model, in Westfield’s case based on stable income flows made possible by a portfolio diversified by geography and type of retailer.

Rarely do all markets experience precisely the same economic conditions at the same time. The geographic diversity in our portfolio allows for stronger growth in one market to compensate for slower growth in another. Similarly, our 24 000 retailers cover the entire spectrum of retail and entertainment, from fashion to food to homewares and discounters. There are entertainment precincts with cinemas and dozens of other retail categories, which means a downturn in one particular type of retail can be offset by the stronger performance of another.


Equally importantly, the quality of our portfolio also contributed to the Group’s resilience in the face of the economic downturn.

During the second half of 2009 we saw signs that the worst effects of the financial crisis were receding and as we enter 2010 there is cautious optimism that we can perhaps begin to plan for more promising times ahead.

Our results for 2009 bear this out, with a 6.2 per cent increase in operational earnings over the previous year. Notwithstanding the difficult conditions globally, the Group was able to meet its forecast given in February last year. The Australian business continued to prove resilient while conditions stabilised in the second half of 2009 in our United States, United Kingdom and New Zealand businesses.

Naturally, the Westfield of 2010 looks very different to the Westfield of 1960. Then, urban design of public buildings was not what it is today. Now we build and manage flagship centres from the heart of Sydney to Los Angeles to San Francisco and London. Westfield has led the way in this transformation of shopping centres from utilitarian buildings to shopping and entertainment destinations that rival the best commercial properties anywhere.

One theme that has continued throughout has been the role of the shopping centre as a focus, or hub, for community activity. Whether in 1960 or 2010, the shopping centre with its mix of food, fashion and entertainment has fulfilled an important social role.

During the year we will publish more about the company’s history, to pay tribute to all those who have made a contribution to Westfield.

It is an important story in Australia’s corporate history, and one worth sharing, especially with you, our shareholders, who have continued to show faith in Westfield through your investment in the Group.

I would like to thank and acknowledge the contribution of the many directors who have served on the board of the company during its 50 years. Few companies anywhere

have been better served than Westfield by the wise counsel and guidance of its board.

I would also like to acknowledge my co-founder, the late John Saunders, and the many executives who have served the company. Their story has mirrored the wider Westfield experience, as our senior executive team has deepened and broadened over the years, away from the partnership model into a much larger and more mature global organisation. It is personally very satisfying to me that my sons have been, and continue to be in the leadership of the Group.

The reputation of Westfield executives is without peer in our industry, and with good reason, and I am grateful for the support and teamwork they have demonstrated over such a long period.

As we enter 2010 I am reminded that while Westfield is now 50 years old, each decade seems to have brought a new beginning. I am confident this will be the case again.

The shopping centre has proved to be resilient and adaptive – it has moved with the times and embraced new retailers and new retail formats. Today, it is incorporating the use of digital and other new technology at a rapid pace. Throughout all this change over 50 years, the shopping centre remains a community hub where people come together to shop, to meet and explore, to be entertained and to do business. I believe that the shopping centres of the future will go on fulfilling that role.

Ahead lies much hard work, and challenges we cannot foresee, but we enter this new decade as we have the previous five – well-equipped to confront the challenges and eager to make the most of the opportunities.

An over-arching theme of the Westfield story of the past 50 years has been optimism, and today I look forward to the future of the Group with the same optimism as ever.

Frank Lowy ACChairman

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