Westfield Group goes to Rio RETAIL property giant Westfield Group is eyeing a share in a $US1.5 billion ($1.64bn) project in the state of Rio de Janeiro as it looks to reignite its business in the high-growth emerging nation of Brazil. The Australian group has teamed with local heavyweights Related Brasil, BNCorp and Bueno Netto to pitch a plan to develop a project called Port City in Marvelous Port, Rio de Janeiro. It is waiting on government-owned bank Caixa Economica Federal to determine if the proposal has been accepted and will learn the project's fate shortly, according to market sources. Winning the deal would resurrect Westfield's ambitions in Brazil which, alongside China, is one of the key destinations for global shopping centre players. Westfield exited a troubled shopping centre joint venture with Brazilian player Almeida Junior in April, when it sold out of the $440 million alliance that covered five assets, but crucially it left the proceeds in Brazil for future investments. At the time Westfield co-chief executive Steven Lowy said the group had decided to dispose of its interest as "the partnership was not conducive to the achievement of the group's long-term objectives in Brazil." "We will continue to independently review opportunities in the region in line with our global operating strategy," Mr Lowy said. The new project will eventually include office towers, apartment blocks and hotels. The shopping centre - with an estimated value of $US530m - is the first component of the project. If the deal is approved, construction could start in the first quarter of 2014 and be finished by 2020. The retail development, known as Harbour City Mall, would be undertaken solely by Westfield over 3 1/2 years. The gross leaseable area for the mall is estimated at 80,000sq m, with potential to increase it to 125,000sq m over time. In keeping with Westfield's global model, it could seek a sovereign fund or major pension fund as a partner to buy the completed mall. Westfield's Brazil head Peter Huddle, who oversees regional growth strategies, told a Brazilian publication that there was a lack of quality competitors in the area. Westfield planned to introduce new retailers into the Brazilian market if it went ahead, he added. If the deal comes off, it would be backed by analysts who are looking for a growth story when results from GPT Group and Stockland have shown that retail sales are sluggish. "If Westfield Group secures the Marvelous Port mall development, we would view this as a positive move to re-invest back into Brazil in more strategic locations," Merrill Lynch said. The move in Rio de Janeiro state is not Westfield's only play in Brazil. Its project partners, Related and Bueno Netto, are also involved in a Sao Paulo project of similar scale, to be developed on the Marginal Pinheiros, and if they are successful that could also see Westfield pick up the retail component. Property executives noted Westfield's patience in assessing, entering and developing centres in new markets. It did not find success in Britain for some years as it pursued a range of smaller projects. Many of these have now been sold, but the group built up its expertise and is positioned to launch landmark projects such as Westfield London and Westfield Stratford. Westfield this year teamed with British rival Hammerson to undertake a £1bn ($1.69bn) redevelopment in the London suburb of Croydon and is reportedly "all over" Lend Lease's offer of a stake in Bluewater shopping centre in Kent. Lend Lease last year lodged outline plans for a 30,000sq m extension of the centre but The Times reported in April that the group could raise up to £530m by selling its holding in the property. Jones Lang LaSalle predicted a strong push into the Brazilian shopping centre market by major global players. However, the second-largest US shopping mall owner, General Growth Properties, last month agreed to sell its stake of about 40 per cent in Brazil's Aliansce Shopping Centres for about $US690m as it focused on the US. The Canada Pension Plan Investment Board picked up a 27.6 per cent interest in the Brazilian retail property group for about $US480m. Brazilian player Rique Empreendimentos e Participacoes bought the remainder. Canadian giant Brookfield is a significant player in Brazil and has holdings in GGP and other Brazilian ventures. Senior managing partner Bruce Flatt last week put GGP's exit from Aliansce down to a lack of comfort with management strategy. It really has nothing to do with Brazil as an investment area. It just fits the strategy at that time in that asset or fund," he said. Top US shopping centre owner Simon Property Group is also cautious on Brazil. Chief executive David Simon told international analysts last month it was yet to build any centres with its partner in the country, BR Malls Participacoes, despite unveiling a venture in April last year. Mr Simon cited the attraction of Brazil's dynamic growth but said the Simon group was yet to find the right deal.