URW announces that the retail opening of Westfield Hamburg-Überseequartier will be postponed until late Q1-2025.
The delay from the previously announced opening of October 17, 2024 allows for additional time necessary to complete the commissioning phase of the project. This relates primarily to operational elements such as the fire and life safety systems and other Mechanical, Electrical and Plumbing (MEP) systems.
With completion not possible ahead of the Winter retail season, the Group will determine a new opening date in consultation with tenants in line with the Spring retail calendar.
URW has continued to strengthen the project’s management and its leadership by appointing a new Head of Construction, and reinforced the team with significant additional expertise in MEP and commissioning.
The retail component of Westfield Hamburg-Überseequartier is 93% let with strong interest in remaining units. As of September 13, 2024 over 75% of leased tenant units are ready to open or in advanced stages of completion.
The Group is confident in the significant positive impact of the project for all stakeholders.
Cost impact
The delayed retail opening will result in an estimated €100 Mn of additional costs, mainly relating to operating the construction site for a longer period and tenant compensation.
The revised opening schedule is not expected to have an impact on the Group’s AREPS guidance for
FY-2024.
Independent investigation
As announced in July, a comprehensive, independent investigation, undertaken by Accuracy (forensic accounting specialists) and White & Case (legal counsel) is underway. The investigation has so far focused on identifying the root causes of the significant cost increases and delays.
The investigation is ongoing and full findings will be reported to URW’s Supervisory and Management Boards. In parallel, the Group has already taken actions to improve internal monitoring and strengthen financial controlling at project level.
