Investors have for a long time approached Westfield Group (ASX: WDC) with caution due to concerns regarding the future of the traditional retail industry. However, there is one big reason they should reconsider their stance.
Westfield Group’s US portfolio ranked in the top position based on an analysis undertaken by Bank of America Merrill Lynch (BoAML) of the mall portfolios of the top-10 shopping centre REITs. The analysis considered factors such as size of the markets, demographics and anchor tenants, highlighting the strong position the Group holds in America.
The Group’s World Trade Centre shopping mall is of particular interest. The mall, located in New York, is set to open in 2015 and could well become the company’s most profitable mall. It is attracting some of the world’s most popular retailers including Giorgio Armani, Tiffany and Apple which will ensure enormous foot traffic.
The company is presenting as a compelling buy at today’s price of just over $11 a share and has the potential to deliver outstanding returns in the long run.