Bid to block mall stake 'pathetic'

SYDNEY - Frank Lowy, the founder and chairman of Westfield Group, the world's biggest owner of shopping malls, said Lend Lease's attempt to stop him buying stakes in three malls from General Property Trust was "pathetic".

Lend Lease chief executive Greg Clarke said Westfield shouldn't be allowed to use its stake in General Property to back the trust's plan to create a European joint venture with investment bank Babcock & Brown and sell the malls.

Westfield last year used its shares to thwart Clarke's A$7.3 billion ($7.8 billion) bid for the trust. Lend Lease manages General Property's assets.

"I listened to the presentation and was sad when I heard what was said about us, and somewhat angered," 74-year-old Lowy, Australia's second-richest man, told shareholders at Westfield's annual meeting in Sydney yesterday. If Lend Lease founder Dick Dusseldorp "had been able to listen to this pathetic presentation, I'm sure he would have turned in his grave".

General Property's decision to sell the malls "has been an exercise to secure Westfield's vote", Clarke, 46, said yesterday.

"Westfield are big, rough, and tough. They've used their influence and they will use it again."

Lowy plans to vote for General Property's proposal. "We've said before that we have shares and we want to vote them and we haven't changed our plans," he said.

Westfield agreed to buy General Property's half-share of Sydney's Penrith Plaza for A$425.4 million, 50 per cent of Canberra's Woden Plaza for A$262 million and 25 per cent of Sunshine Plaza in Queensland for A$155 million.

"Those three shopping centres are very good shopping centres but they are not managed to full capacity," Lowy said.

- BLOOMBERG