The Real Deal New York

Port Authority may subsidize Rupert Murdoch’s 2 WTC lease

News Corp., 21st Century Fox's rent could be reduced by $43 million in total

December 08, 2015 08:21AM

From left: Bjarke Ingels, Rupert Murdoch, the World Trade Center site and Larry Silverstein

From left: Bjarke Ingels, Rupert Murdoch, the World Trade Center site and Larry Silverstein

The financing of 2 World Trade Center has apparently stalled, with New York State and the Port Authority now considering millions in subsidies for construction of the monumental project.

The State and the Authority are mulling a total of $25 million in aid to jumpstart construction, as well as a rent subsidy worth $43 million for prospective anchor tenants News Corp. and 21st Century Fox, both owned by Rupert Murdoch.

The project’s success “is contingent on some public sector support,” according to a statement from the Authority. It had previously said the project wouldn’t require such support.

The aid would consist of a one-time payment of $15 million from New York State, as well as a $10 million tax credit, Politico reported. Silverstein Development net-leases 2 WTC.

News Corp and 21st Century Fox, both controlled by the Murdoch family, signed a nonbinding letter of intent to take 1.5 million square feet at the Bjarke Ingels-designed tower.

Larry Silverstein has been seeking $500 million in EB-5 funding as well as a construction loan worth about $2.2 billion[Politico]Ariel Stulberg

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