The Port Authority of New York and New Jersey and the Westfield Group announced an agreement for Westfield to purchase the Port Authority’s 50% interest in the World Trade Center retail premises for $800 million.
Following the acquisition, Westfield will own 100% of the retail project.
“Since 2001, Westfield has believed in and remained committed to investing in this site and in this city. We take great pride and pleasure in amplifying that commitment today,” said Peter Lowy, Westfield Group co-CEO.
“We have greatly valued our long standing relationship with the Port Authority, and will continue to work in close collaboration for the successful realization of the overall project. Now, we look forward to 2015 and celebrating the distinctive character and vibrancy of this great city, while introducing Westfield World Trade Center to New Yorkers and global visitors alike.”
Port Authority chairman David Samson noted that Westfield’s $1.4 billion overall investment in the World Trade Center retail project represents the largest private sector investment at the site.
Westfield originally acquired its 99-year lease interest in the World Trade Center retail facilities in July, 2001.
The Port Authority and Westfield entered into a joint venture to own and operate the retail space at the World Trade Center site in May, 2012, with Westfield assuming responsibility for management and leasing on behalf of the joint venture.
The $800 million purchase price is subject to a one-time additional contingent payment to the Port Authority within five years of the opening date if Westfield exceeds certain mutually agreed upon return thresholds.
The WTC retail premises comprise approximately 365,000 s/f of retail space located across multiple levels in the Santiago Calatrava designed Oculus, with major street level presence along Church Street, Cortland Way and Dey Street, and three stories above grade in Towers 3 and 4.
An additional 90,000 s/fof retail space will be added when Tower 2 is developed in the future. The initial phase of the retail complex is expected to open in 2015.