Westfield to Sell WTC Stake to Port Authority

Westfield America, a division of Australia’s Westfield Holdings, the property management company that held a retail lease on the commercial areas of the World Trade Center, has agreed to sell its rights to the Port Authority of New York and New Jersey for $140 million.

The company had announced last September that it wanted to be free from the controversy and the lawsuits surrounding the insurance recoveries and the rebuilding of the site. The easiest way to do that was to sell back the lease, which it has now done. It did agree, however, to pay the Port Authority $1 million for a right of first refusal if it ever decides to offer the leasing rights for sale to another buyer.

The agreement was reportedly reached as part of a settlement agreement between Silverstein Properties, the Port Authority and GMAC Commercial Mortgage Corp., Silverstein’s principal lender. (See IJ Web site Nov.24)