The Lowy Family’s hold on Westfield Group was eased a touch yesterday with David Lowy stepping down (along with long time director, David Gonski), and 80 year old co-founder frank Lowy stepping back to be a non-executive chairman.
The news, conveyed to the market in this announcement had little impact on the securities of Westfield Group; they closed down 7c at $9.57 in a market that was weaker all day.
The securities of the associated Westfield Retail Group rose 3c to $2.70 with analysts say they were reacting to the positive news about the Centro group which may have a new life after its near death experience.
Frank Lowy is not a director of Westfield Retail; Steven is the only family member on the board.
Mr Lowy moves from executive chairman of Westfield Group to the post of non-executive chairman, leaving the day-to-day running of the vast empire to his two younger sons, Peter and Steven.
Mr Lowy set up the group with John Saunders and has been considered a pioneer in shopping centre developments. The most recent is the $2.1 billion Westfield Sydney in the Pitt Street Mall and the new malls in London’s west end and at Stratford, the home of the athletes’ village for next year’s London Olympics.
As well as this change, eldest son and vintage plane enthusiast David Lowy will step down, as will his fellow director David Gonski who is now ASX chairman.
David Lowy served on the Westfield board for 34 years, and Mr Gonski, for 25 years.
Brian Schwartz has been appointed deputy chairman to replace David Lowy, while chief financial officer Peter Allen is proposed as director.
Mr Schwartz is the recently appointed chairman of Insurance Australia Group and is a board member at Brambles.
He is also Brian is a consultant to Investec Bank (Australia) Ltd (which he was CEO of for several years).
He is also the deputy chairman of the board of Football Federation Australia Limited. Frank Lowy is known as ‘Mr Soccer’ for his promotion and support of the roundball game in Australia.
The changes will be presented as resolutions to shareholders at the group’s annual general meeting on May 25.
David Lowy runs LFG Holding, the private business and investment company of the Lowy family. It is reputed to have several billion dollars of assets.
In the statement, Frank Lowy said he would be an active and involved chairman, staying close to the business and contributing to the strategy and all major decision making for the group.
"I am healthy and committed and I will continue to contribute to the group which has been my life for more than 50 years," he said.
He would also continue his roles as chairman of both the Football Federation of Australia and the Lowy Institute for International Policy.
"The time is right for these moves," he said.
"They clarify my ongoing role and put the leadership of the group in the best position to make the most of the exciting growth opportunities ahead."
