Westfield seeks to double Sept 11 payout

By ANNE GIBSON

The Australian owner of the largest clutch of shopping malls in New Zealand is going to court in the United States to have the World Trade Centre attacks declared two separate disasters.

The Australian Financial Review reports that Westfield America and fellow leaseholder Larry Silverstein stand to double the insurance payout from the disaster and collect US$7.1 billion ($14.4 billion) if the US court declares the terrorist attacks two incidents.

Without this ruling, a payout of only US$3.5 billion is due. But this month District Court judge John Martin ruled that the case must go to trial.

Westfield and Silverstein, a Manhattan developer, wanted Judge Martin to rule that the New York attacks on September 11 were separate incidents, allowing them to seek to prove that the other 23 companies which insured the World Trade Centre had used a policy with Travellers Indemnity Co as a template for their own.

Westfield America and Silverstein held 99-year leases over the retail and office space in the 110-level centre. The site is owned by the Port Authority of New York and New Jersey.

Westfield's Shoppingtown in the building comprised a vast 40,000sq m of retail space.

In New Zealand, Westfield has the lion's share of shopping malls, with Auckland centres at Downtown, Glenfield, Manukau, Pakuranga, Takapuna, St Lukes and Henderson.

It has Chartwell in Hamilton, Johnsonville and Queensgate in Wellington and a mall at Riccarton in Christchurch.

Westfield owner Frank Lowy, with an estimated fortune of A$4.2 billion ($4.9 billion), is one of Australia's richest men.