London 2012 Olympics Hits Sponsorship Target

(ATR) London 2012 organizers have met their £700 million ($1.1bn) sponsorship target after today announcing Westfield as the official shopping center developer of the Games.

Westfield is LOCOG's 44th domestic sponsor. The tier three deal is worth between $16m and $32m.

The announcement comes six days before Westfield's 1.9 million sq ft Stratford City development opens its doors on a site next to the Olympic Park in east London. The $2.3 billion retail and leisure destination is the largest urban shopping center in Europe.

LOCOG chief executive Paul Deighton has revised up the 2012 sponsorship target several times in the past two years. The initial target was set between £650m and £700m. But London 2012 signed up most of its premium partners early in its fundraising campaign before the onset of the global recession.

"It is with great pride that this deal takes us to our target of raising £700m in domestic sponsorship. We have a fantastic group of world class sponsors on board, now joined by Westfield, working with us to stage spectacular Games next summer," he said in a statement.

The fundraising effort, which began in 2007, now includes seven top tier domestic partners and seven tier two supporters and puts LOCOG on course to deliver its £2 billion ($3.2bn) budget to stage the Olympics and Paralympics.

A London 2012 spokesman tells Around the Rings there may be more tier three sponsors to come.

"Never say never. We’re not closing the program yet, put it that way," he said.

Commenting on the new sponsorship, Deighton added: "With Westfield Stratford City on the doorstep of the Olympic Park and set to be a major destination for athletes and spectators alike at Games-time, it is an obvious and perfect fit.

"Alongside the Olympic Park, Westfield Stratford City is a tangible example of how east London is at the start of an exciting new journey."

Olympic organizers estimate that 75 percent of visitors to the Games will pass through the shopping complex on their way into the Olympic Park at Games-time.

Under the deal, Westfield will be home to the first ever Team GB and Paralympics GB merchandise shop which will open later this month. As part of the London 2012 merchandise program, it is expected to raise more than £80m towards the costs of staging the Games.

The John Lewis store at Westfield Stratford City will also house a 4,000 sq ft space dedicated to London 2012 merchandise.

Westfield will also provide facilities to LOCOG to support the operational running of the Games. Last month it was announced that the building would host Team GB and Paralympics GB throughout the Games in an eighth floor venue overlooking the Olympic Park.

Michael Gutman, managing director for Westfield UK/Europe, said: "We expect that Westfield Stratford City will enhance the whole Olympic experience in the period leading up to and during the Games as well as providing a unique boost to the legacy for many years beyond as well."

Reported by Mark Bisson