Part of the Westgate shopping center will soon be repurposed into office spaces. This information has been unofficially confirmed by several sources, and from Westgate itself, we received only a brief response that the center is undergoing repositioning, but no further details were provided.
As we have unofficially learned, in addition to stores, the center will in the future feature office facilities, a conference hall, catering establishments, as well as medical, dental, and sports centers. Along with the repurposing of the existing retail space, the Westgate management plans to expand on the remaining, previously undeveloped area owned by the same company. New spaces intended for logistics, distribution, and light industry are expected to be located there.
As part of the repositioning, Westgate Shopping Center has also received a new name, Westgate City, and the broader project, which includes logistics facilities, will operate under the name Westgate Business Park.
This repurposing is quite logical given that Westgate has not achieved impressive results almost since its inception. As early as 2010, just a year after opening, tenants complained about low traffic and requested rent reductions, and after stores such as Zara, Bershka, Massimo Dutti, Pull&Bear, and Stradivarius left the center in 2017, there were talks of its closure.
According to data from Poslovna Hrvatska, Westgate City has been recording negative business results year after year. In 2022, it generated revenue of 7.8 million euros and almost the same amount in losses – 7.4 million euros.
Poor business performance was likely also the cause of disputes between the former co-owners of the center. Namely, Jutarnji list reported in 2016 that brothers Thomas and Bernhard Braunsberger, former owners of 50 percent of Westgate, filed a criminal complaint against nine individuals gathered in the company Focus Invest. In the complaint, they stated that they were harmed in the amount of 16.4 million euros and that they were completely squeezed out of co-ownership during the recapitalization process.
The Westgate shopping center spans an area of 226 thousand square meters, while the retail space covers one hundred thousand square meters. The investment value was 270 million euros.
