Westfield has signed a non-binding letter of intent to sell its stake to the New York and New Jersey Port Authority for $140 million.

"We are selling our interests to the Port to help simplify the overall rebuilding process and expedite the rebuilding of the World Trade Center," Westfield chairman Frank Lowy said.

"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."

Westfield paid $127 million for a 99-year lease on the retail space beneath the WTC towers just two months before they were destroyed by a terrorist attack.

The letter of intent follows months of discussions between the Port Authority and Westfield on how best to proceed with the redevelopment of the retail facilities at the WTC.

The sale price allows Westfield America to recover its initial investment and associated costs.

The deal is subject to completion of negotiations, due diligence and  required approvals.
 
AFP