News: Westfield commences $320M redevelopment

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Westfield Retail Trust (ASX:WRT) and Westfield Group (ASX:WDC) have commenced a $320 million redevelopment at Westfield Fountain Gate, due for completion at the end of 2012. 

The shopping centre, south east of Melbourne’s CBD, will be expanded though 122 new tenancies, in addition to a Myer Holdings Ltd (ASX:MYR) department store, new format Coles supermarket and expanded Target Store.

The property trust says its share of the project cost is likely to be around $160 million. 

Westfield Retail Trust’s managing director Domenic Panaccio says the redevelopment will further capitalise on the centre’s strength and deliver good investment returns.

The company advises that Westfield Fountain Gate is the highest grossing discount department store based shopping centre in Australia, currently valued at around $880 million.