When will Unibail-Rodamco-Westfield's flagship project in Hamburg actually be delivered? The question is worth asking, given the succession of postponements.
The opening of this 172,200-square-metremixed-use development was initially scheduled for last spring, before being postponed for the first time to October 17, resulting in an additional cost of €520 million, from €1.64 billion to €2.16 billion, and forcing the real estate company to launch an action plan (audit entrusted to Accuracy and White&Case, phasing of investments across its centers, changes in management teams, and so on).
At 8:15 this morning, in a press release, URW finally announced that the opening had been postponed the first quarter of2025 "to complete the commissioning phase of the project". "This mainly concerns operational elements such as fire and life safety systems and other mechanical, electrical and plumbing (MEP) systems," says the group headed by Jean-Marie Tritant.
URW continues: "As completion of the project is not possible before the winter shopping season, the Group will set a new opening date in consultation with tenants, in line with the spring shopping calendar."
The retail component of Westfield Hamburg-Überseequartier is 93% let, says the CAC40-ranked company. As of September 13, more than 75% of the leased units were ready to open or in the advanced stages of completion.
This new postponement is not without consequences for the total cost of the operation: an additional cost of €100 million is anticipated, "mainly linked to the operation of the construction site for a longer period and tenant compensation".
URW affirms that "the revised opening schedule should have no impact on the Group's Areps forecasts for fiscal 2024".