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Australian shopping centre developer Westfield is on track to open its first Continental European shopping centre in Milan by end-2016, director Bill Giouroukous, director of operations at Westfield, has told PropertyEU at the Mapic retail fair in Cannes. ‘We talked to a lot of retailers at Mapic who want to expand their business and open flagship stores. All the ingredients for success are there.’

Giouroukous said the company was in the process of fine-tuning the development plans and getting planning approval from the authorities. ‘The retailers we talked to at Mapic are potential anchor stores, major space users and luxury brands. They told us we’re on the right track so a big tick there. They also told us they want to be part of it so a big tick there too.' Giouroukous said he was struck by the confidence in the market and the asset. 'It’s comforting for us to hear that retailers are seeing Milan the same way as we do.‘

Sydney-listed Westfield announced in mid-2011 that it was planning to expand into Continental Europe by taking a 50% stake in a EUR 1-1.25 bn development in Milan. The 60-hectare site, adjacent to Milan’s Linate airport, will be developed in a joint venture with Gruppo Stilo, an Italian-based developer and owner of major retail brands, controlled by its founder Antonio Percassi.

Giouroukous said the Milan mall will have a greater emphasis on European retailers than Westfield's two flagship malls in London - Westfield London and Westfield Stratford City. ‘Milan is the fashion heart of world. We already have international brands from the US and the UK at our London and Stratford malls. In Milan I think we might see a blend of the brands at those two centres as well as some local content. There will also be some food statements that will be more localized. That’s important for the local colour.’

Under the current plans, Westfield aims to create a 170,000 m² in Milan with 300-odd stores which will make it one of the biggest shopping centres in Western Europe. ‘It will also be the best shopping centre in Europe, we’re very confident of that,’ Giouroukous added. ‘Milan will bring together the best things of our Westfield London and Stratford malls – the leisure, fresh food, use of technology and customer services – as well as the next evolution of our Luxury Village. None of the Italian malls have that.’

The Milan Luxury Village will at least be as big as Westfield London's with about 40 stores, Giouroukous said. ‘But the design will be completely different. We’re able to work with retailers and help them create an iconic statement for their brand. The overall design will be unified as a village, but the key thing here is that we can work up a plan together.’

At Mapic Westfield also focused efforts on talks with retailers interested in becoming anchor tenants for the new Milan mall. Giouroukous declined to provide any names, but said a contract could be signed in early 2013.

He conceded that the timing for an opening in late 2016 was ambitious, but said it was achievable. ‘We don’t think we will have a struggle. We have a partnership on the ground and can draw on local knowledge.’ He declined to comment on how the project would be financed or whether Westfield would team up with an equity partner, but said Westfield’s own balance sheet was strong enough to finance the development and that it was not currently seeking additional funding.

In 2010 Westfield shifted its focus to higher-return activities including development after spinning off the domestically-focused Westfield Retail Trust. Peter and Steven Lowy, who took over the helm of the company from their father Frank in May 2011, have since announced moves into New York city, Brazil as well as Milan, in partnership with local companies and started joint ventures with groups including Dutch pension fund giant APG and the Canada Pension Plan Investment Board.