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Westfield Group, the largest mall operator in Australia, said it would be acquiring the 50% stake in retail space at the World Trade Center site in lower Manhattan owned by the Port Authority of New York and New Jersey so it can gain full control of the project. With USD 800 million purchase, the investment of Westfield in the site now amounts to over USD 1.4 billion. The transaction includes an estimated 365,000 square feet of space at the World Trade Center Transportation hub which is currently being built. The street-level real estate on Church, Cortland and Dey streets are also included in the purchase.

The acquisition came after the announcement issued by Westfield yesterday, baring their plans to split their businesses. The international projects, which include the World Trade Center, will become part of the firm that will be called the Westfield Corp. Its Australian and New Zealand shopping centers, meanwhile, will be handled by a separate firm called Scentre Group.

In a statement, Port Authority Chairman David Samson said the transaction will enable the Port Authority to refocus the resources of the agency on their core transportation mission.

Westfield first acquired an interest in the project in 2001 through a 99-year lease. In May last year, the Sydney-based firm then established a 50/50 joint venture with the Port Authority. The World Trade Center retail complex is set to open its doors in 2015.

Port Authority Vice Chairman Scott Rechler added, "Westfield's $1.4 billion commitment to the retail project generates upfront capital, allowing us to further reduce our redevelopment risk, and additionally deliver critical jobs to the region."

The statement also said that the stake purchase of Westfield represented a premium in value of 30% for the Port Authority. The Port Authority said it can potentially get an additional one-time payment from Westfield within the first five years after the site opens for as long as Westfield will go over return thresholds that were previously agreed upon.