Westfield America has announced 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 Centre retail premises for $US140 million.
Westfield had previously announced on September 15 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 $US1 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 Centre for no additional consideration.
Westfield America chief executive Peter Lowy says the group is selling its interests to the Port Authority to help simplify the overall process and expedite the rebuilding of the World Trade Centre.
“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,” Lowy says.
“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.”
