Westfield Hamburg-Überseequartier was originally scheduled to open its doors in April 2024. In June, operator Unibail-Rodamco-Westfield (URW) announced that it would postpone the opening of the mixed-use project to October 17 due to water damage. This time, the reason is aspects of building technology, such as fire protection and security systems, the completion of which is essential for the commissioning of the project, which will result in its later opening.
Now URW is postponing the date again: from autumn 2024 to the first quarter of 2025. An exact date will be determined in consultation with the rental partners, and the new opening date will be set “taking the spring retail season into account”.
The later opening will also entail additional costs, according to URW. The company will have to pay an estimated EUR 100 million, which will mainly be related to the extended construction period and compensation for the tenants. The company does not expect this to have an impact on URW’s profit forecast for adjusted recurring earnings per share.
Unibail-Rodamco-Westfield reports that it has already leased 93% of the project area. As of September 13, 2024, 73% of the leasing partners were ready to open or in an advanced stage of completion. “There is strong interest in the remaining units,” URW continued. “URW is convinced that the project will have a significant positive impact on all stakeholders.”
Independent investigation in controlling
Since July, the project, with its significant cost increases and delays, has been the focus of an independent investigation. Accuracy, experts in forensic accounting, and the legal consultancy White & Case are conducting these investigations. The full results will be presented to URW’s supervisory board, and initial measures to improve internal monitoring and financial controlling have already been taken.
