They have a unveiled a net annual A$2.2 billion (£989 million) loss, the first in its 48-year history, and deferred all new developments for at least a year.

 

But current projects will continue as planned, including the £1.3 billion shopping centre at Stratford, which is adjacent to the London 2012 Olympic Village, the company said.

 

When completed, Stratford City will consist of 13.5 million sq ft of new space incorporating 5 million sq ft of commercial development, 5 million sq ft of residential floorspace comprising 5,312 new homes - of which up to 3,000 will be used initially for the Olympic Village - together with community facilities, and public spaces.

 

Westfield will develop the retail spaces at Stratford City.

 

The 1.9 million sq ft retail and leisure development will be anchored by the John Lewis Partnership with a 240,000-sq ft full range John Lewis department store and a 32,000 sq ft Waitrose.

 

The town centre district will house the bulk of Stratford City’s retail content, linking two major rail interchanges: the new Eurostar station on the High Speed 1 line to the Channel Tunnel and Stratford Regional Station with its extensive rail, DLR, bus, mainline and underground connections.

 

Westfield’s idea is to create a quality environment based on strong economic growth, to regenerate East London.

 

Westfield, acquired its initial 25 per cent stake in related company Stratford City Development Ltd in December 2004, but in 2006 paid £140 million for the remaining 75 per cent from Multiplex, companies associated with David and Simon Reuben and Stanhope Ltd.

Westfield's joint managing directors, Steven and Peter Lowy, said the weak markets that accounted for the poor results were the United States, Britain and New Zealand, which account for about 60 per cent of earnings.

 

They said these countries had more exposure, per capita, to fixed and subprime mortgages, higher fuel costs and debt than Australia, which all helped to drag down the overall result.

 

Peter Lowy said Westfield London, located close to the site of the old White City, which hosted the 1908 Olympics, continued to perform well despite the weak British economy.

 

Peter Lowy added that Britain went into recession before Australia and were likely to come out earlier.

 

He said: “The downturn and economic turmoil will not last forever.

 

"We are not immune entirely.

 

"Our goal is to be in a position to take advantage of the economic turmoil, produce sustainable long-term returns, and at the same time increase market share either through acquisitions or development.”