Westfield America announces agreement to sell World Trade Center retail interest to the Port Authority of New York and New Jersey
02 December 2003
Countries: United States
WESTFIELD AMERICA ANNOUNCES AGREEMENT TO SELL WORLD TRADE CENTER RETAIL INTEREST TO THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY
2 December, 2003
* All amounts in the media release are in US dollars.
Westfield America announced today that it has entered into a definitive agreement with The Port Authority of New York and New Jersey for the sale of the company’s interest in the World Trade Center retail premises for $140 million. Westfield had previously announced on September 15, 2003 that it had entered into a non-binding letter of intent for the transaction. The agreement will be effective upon the expiration of the Port Authority’s 10-day review period by the Governors of New York and New Jersey. The transaction is expected to close before year-end.
The agreement includes a right of first offer for Westfield in the event the Port Authority decides to offer the retail premises to a third party in the future. Westfield America will pay $1 million to the Port Authority to acquire this right. Additionally, Westfield has agreed to make available to the Port Authority retail consulting services in connection with the redevelopment of the retail portion of the new World Trade Center for no additional consideration.
Westfield America Chief Executive Peter Lowy said: “As we announced in September, we are selling our interests to the Port Authority to help simplify the overall process and expedite the rebuilding of the World Trade Center. Our sale allows the Port Authority to move forward with the redevelopment free of the conflict between the interests of the public and our commercial/net lease rights. We are pleased to finalize this transaction and look forward to assisting the Port Authority to develop the best retail space possible for the site and for Lower Manhattan.”
Westfield America, Inc. is the United States subsidiary of Westfield America Trust (ASX: WFA), the second-largest property trust listed on the Australian Stock Exchange. WFA owns a majority interest in the Westfield America portfolio of 66 centers, branded as Westfield Shoppingtowns. Westfield Shoppingtowns are home to over 8,900 specialty stores and encompass more than 68 million square feet in the states of California, Colorado, Connecticut, Florida, Illinois, Indiana, Maryland, Missouri, Nebraska, New Jersey, New York, North Carolina, Ohio and Washington.