Westfield America to sell World Trade Center retail interest to Port Authority of New York and New Jersey
15 September 2003
Countries: United States
Westfield America today confirmed reports that it has commenced discussions and signed a non-binding letter of intent with the Port Authority of New York and New Jersey for the Port to purchase the company’s interest in the World Trade Center retail net lease for US$140 million. This allows Westfield America to recover its initial investment and associated costs. The arrangement is subject to completion of negotiations, legal documentation, due diligence and required approvals.
The letter of intent is the culmination of several months of discussion between the Port Authority and Westfield on how best to proceed with the redevelopment of the retail facilities at the World Trade Center and provides the basis for the resolution of these discussions.
Westfield Chairman, Mr Frank Lowy, said: “We are selling our interests to the Port to help simplify the overall rebuilding process and expedite the rebuilding of the World Trade Center. While Westfield wanted to be a part of the future of the World Trade Center, we recognised the conflict between the interests of the public and the needs of our commercial/net lease rights. Selling our interest back to the Port will allow the public interest to take precedence.
“We hope to complete the negotiations with the Port in a timely fashion.”