Westfield wins contract for LAX retail space
Westfield has been awarded rights to develop, lease and manage the retail space at the Los Angeles airport, LAX, the sixth-busiest airport in the world and third in the US.
It’s a 17-year agreement with the Los Angeles Board of Airport Commissioners.
The forecast minimum revenue to Los Angeles World Airports (LAWA) is US$331.1 million over the full term, which comprises a two-year development period and a 15-year operational period.
Westfield and its concessionaires must invest no less than US$81.9 million in initial improvements and US$16.4 million in mid-term refurbishment improvements to four facilities: the existing Tom Bradley International Terminal (TBIT), the new TBIT currently under construction, Terminal 2 (LAX’s second-busiest international terminal), and the airport’s iconic Theme Building. The landmark Theme Building opened in 1961 with the building with observation level resembling a flying saucer on four legs.
The agreement covers a minimum of 7,828 square metres of concession area.
“Los Angeles World Airports is undertaking a US$4.11 billion modernisation program at LAX to improve customer service, safety and security at one of the most significant international gateways in the world,” advised LAWA executive director Gina Marie Lindsey in a Moodie Report update.
“Westfield is very proud to be selected to partner with Los Angeles World Airports in the transformation of Los Angeles International Airport,” says Westfield Group Chief Executive Officer Peter Lowy. “We are fully committed to bringing our global resources and development expertise to deliver an iconic, world-class airport experience.”
Westfield Concessions Management LLC was selected from three bidders.
Airport officials are planning to award another concessions management contract for terminals 1, 3 and 6 later this year.
Westfield currently has similar operations at nine other US airports, including New York/John F. Kennedy International, Boston/Logan International, Ronald Reagan/Washington National, Washington/Dulles International, and George Bush Intercontinental/Houston.
Westfield’s airport retail division has 16 years of airport concessions development and management experience at major US airports.
The group has investment interests in 122 shopping centres in Australia, the United States, the United Kingdom, New Zealand and Brazil, with a total value of assets under management in excess of US$59 billion.
In the US it has 55 shopping centres that are home to 9,000 specialty stores and comprise 5.85 million square metres of leasable space across the US.
In the Los Angeles area, it owns and operates nine shopping destinations including Westfield Century City, Culver City and Topanga.
LAX offers more than 600 daily flights to 91 domestic cities and more than 1,000 weekly nonstop flights to 56 cities in 32 countries on nearly 75 air carriers.
