Global shopping mall giant Westfield Group (WDC.AU) has announced a EUR115 million (US$163.6 million) move into Italy, just days after announcing an expansion into Brazil.

Westfield will invest the money in two stages to take a 50% interest in a mall development site in Milan with planning approval for a center similar in size to its large Westfield London mall.

An initial EUR65 million investment will be followed by another EUR50 million at the commencement of development, expected to occur during the year to June 30, 2013 so the mall can be completed in time for the Milan World Expo in 2015.

"This acquisition represents a unique opportunity, notwithstanding the volatile financial markets at present, to establish our franchise in one of the wealthiest population centers in Europe," Chairman Frank Lowy said in a statement.

Italy's unemployment rate stood at 8.1% in May and concerns about its ability to pay its debts are contributing to severe volatility in global markets. Westfield, however, said that Milan, in Italy's north, is the country's major financial center and has the highest income demographic.

The Sydney-based company recently spun a half share of its Australian and New Zealand malls into a new fund and said it could use some of the proceeds for an expansion into new markets. The BRL740 million (US$455 million) Brazil move announced Wednesday was its first foray into an emerging market and its first move into a new country since it came to London in 2000. It owns or has interests in 119 malls in Australia, New Zealand, the U.S. and the U.K. and picked up an extra five, including two under development, with the Brazilian joint venture with Almeida Junior Shopping Centers SA.

-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692; Ross.Kelly@dowjones.com

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