URW announcement on Westfield Hamburg-Uberseequartier opening delay

Unibail-Rodamco-Westfield (ASX:URW) has announced the postponement of the retail opening of Westfield Hamburg-Uberseequartier to late Q1-2025. The delay is attributed to the need for additional time to complete the commissioning phase, particularly focusing on operational elements such as fire and life safety systems and other Mechanical, Electrical and Plumbing (MEP) systems.

Executive commentary on Westfield Hamburg-Uberseequartier opening delay

The delay in the retail opening of Westfield Hamburg-Uberseequartier is necessary to ensure the completion of essential operational elements, including fire and life safety systems and MEP systems. We are confident in the project's positive impact and have strengthened the management team to address the delay effectively. The additional costs incurred due to the delay are estimated at €100 Mn, mainly related to prolonged construction site operations and tenant compensation. The revised opening schedule is not expected to impact the Group's AREPS guidance for FY-2024. We are also conducting an independent investigation to identify the root causes of the cost increases and delays, and have taken proactive measures to enhance internal monitoring and financial controlling at the project level.

Summary of URW announcement and outlook

Unibail-Rodamco-Westfield (ASX:URW) has announced the postponement of the retail opening of Westfield Hamburg-Uberseequartier to late Q1-2025, citing the need for additional time to complete essential operational elements. The delay is expected to result in an estimated €100 Mn of additional costs, primarily related to prolonged construction site operations and tenant compensation. Despite the delay, the Group maintains its confidence in the project's positive impact and has taken steps to strengthen the management team and enhance internal monitoring and financial controlling. An independent investigation is underway to identify the root causes of the cost increases and delays, with a commitment to report the full findings to URW's Supervisory and Management Boards. The Group's AREPS guidance for FY-2024 is not expected to be impacted by the revised opening schedule. URW remains committed to its urban regeneration projects and sustainability standards, striving to make a positive environmental, social, and economic impact on the cities and communities where it operates.