The £4 billion Stratford City site has planning approval for 13 million square feet of mixed use development, including two million square feet for retail development, and is next to the site for the 2012 London Olympic Games. It will be home to much of the Olympic Village, which will be available for residential occupation after the Games are finished.

 

"The Olympic Delivery Authority welcomes this resolution of the ownership of Stratford City Developments Ltd," said David Higgins, the chief executive of the Olympic Delivery Authority.

 

"This agreement puts another building block in place for the Olympic project, following publication of the masterplan for the Olympic Park last week."

 

A Westfield spokesperson said fears of late completion of the Olympic site were a clear driver for the deal.

 

"That was clearly a concern on the part of some of the authorities, like London and Continental Railways.

 

"They clearly had become frustrated with the inability of the various partners to move more quickly and that's what led to the resolution that was arrived at today," the spokesperson said.

 

The world's largest shopping center owner said the interests were bought from the combined 50 pct holding of David and Simon Reuben and Australia's Multiplex Group - with whom they had been in dispute with - together with a 25 pct interest held by Stanhope Ltd.

 

Westfield will also look to develop a "a high quality super regional shopping centre" on the site.

 

Westfield acquired its initial 25-per-cent interest in Stratford City Developments Ltd as part of the Duelguide/Chelsfield acquisition in December 2004.

 

 

The company said the acquisition would allow it to make an important contribution to preparing London for the 2012 Olympic Games.

 

"Westfield acknowledged the difficult decision that was required from its fellow shareholders in Stratford City to exit the project for the good of the scheme and the London 2012 Olympics," the company said in a statement.

 

"Westfield look forward to working closely with the relevant authorities, including the Olympic Delivery Authority, LCR, the GLA and the London Borough of Newham to develop a high quality super regional shopping centre and to participate in the other mixed use components on the site."

 

In a statement, the Reubens said: "We would love to have been the developer but we have stepped aside in the greater interest of a really successful 2012 London Olympic Games."

 

In paying tribute to the Reuben brothers’ involvement in Stratford City, Westfield said: “We appreciate and acknowledge the contribution of the Reuben brothers facilitating this agreement.

 

"We recognise how enthusiastic they have been to make sure the project is on time and they have put the interest of the London Olympics ahead of any other considerations.”

 

It is claimed that rogress on the plans for Stratford City and the associated Olympic infrastructure continues to be good - the revisions to the section 73 (residential allocation) in Stratford City Zone 1 have already been submitted and the revised masterplan is expected to go before Newham Planning Committee in two weeks.

 

Furthermore, detailed aspects of the masterplan, such as the sustainable development strategy and air quality plans are already complete.

 

The Westfield Group has about £20 billion of assets under management in a portfolio of 128 shopping centres in Australia, New Zealand, the United States and the United Kingdom.

 

It completed a good day for Westfield chairman Frank Lowy. Earlier, he had seen Australia beat Japan 3-1 at the World Cup in Germany. Lowy is president of the Australian Football Federation.