Developer invests in World Trade Center retail

NEW YORK The Westfield Group, a shopping center developer, today announced that, in letter to The Port Authority of New York and New Jersey, it expressed interest in a reacquiring a stake in the retail premises at the World Trade Center site.

Under the terms of the transaction, Westfield and the Port Authority will form a joint venture to own the retail facilities, with Westfield responsible for management and leasing for the joint venture.  Westfield will invest up to $625 million in development costs.  The transaction is subject to completion of legal documentation, due diligence and required approvals.

"We are excited to be back," said Westfield Group Managing Director Peter Lowy. "We always wanted to be a part of the revitalization of this historic site once the plans were finalized.  With the Port Authority, we look forward to creating a world-class, iconic shopping destination for Lower Manhattan."

Plans for the retail premises currently include approximately 488,000 square feet of GLA spread across multiple levels, with the primary retail space located in the new transit terminal designed by Santiago Calatrava, and at street level.

Westfield originally acquired an interest in the retail facilities at the World Trade Center in July 2001.  In December 2003, Westfield sold its interest in the World Trade Center retail premises to the Port Authority to help simplify the rebuilding process by avoiding the inherent conflict between its commercial/lease rights and the interests of the public.