Westfield Group has agreed commercial terms for a joint venture of the retail premises at New York’s World Trade Center site.
Westfield had an interest in the WTC retail facilities just before the September 11, 2001 terrorist attacks. The joint venture agreement marks a return for the company.
The world’s biggest shopping centre owner signed the terms with The Port Authority of New York and New Jersey. Westfield had sold its interest in the WTC in 2003 to the port authority to simplify the rebuilding process.
Westfield will invest $US612.5 million ($558 million) for a 50 per cent share in the joint venture.
Westfield said it could invest up to a further $US37.5 million on achieving agreed yield targets.
The transaction is subject to completion of legal documentation and due diligence and is expected to close in the fourth quarter of 2011.
Westfield will manage and lease the retail facilities on behalf of the joint venture.
“We are excited about our partnership to rebuild the World Trade Center retail,” Westfield joint chief executive Peter Lowy said in the statement.
“We will be creating a world-class, iconic shopping experience for Lower Manhattan and the City of New York.”
Plans for the retail premises include about 365,000 square feet (33,909 square metres) of leasable space. A further 90,000 square feet may be added later.
The retail space is expected to open in early 2015.
Source – The Sydney Morning Herald
