NEW YORK CITY—Add two companies controlled by Rupert Murdoch to the growing roster of media organizations moving to Lower Manhattan. News Corp. and 21st Century Fox said Tuesday they had reached a non-binding agreement with Silverstein Properties Inc. to anchor 2 World Trade Center, to date the only one of the four WTC towers that has yet to break ground.

The New York Post reported Tuesday that the two companies, currently headquartered in Midtown, would occupy a combined 1.3 million square feet at 2WTC. News Corp. is based at 1185 and 21CF at 1211 Ave. of the Americas in leases that expire in 2020. It's possible that both tenants may stay put on Sixth Avenue if a final agreement with SPI can't be reached.

However, a joint statement Tuesday from the two Murdoch-controlled companies accentuated the positive. “The new headquarters would provide 21st Century Fox and News Corp with a range of efficiencies as well as the flexibility for future growth, while helping cement Lower Manhattan as a dynamic new hub for media,” according to the statement. “While no final decisions have been made, we look forward to continuing to work with SPI on the design of the new headquarters and terms of our lease arrangement.”

The 80-story tower will have a new design from Bjarke Ingels Group, replacing the original Norman Foster plan for the tower, intended primarily to house financial firms. Within the BIG blueprint will be space configured for studios, newsrooms and teams from across both companies' businesses.

“A decision by 21st Century Fox and News Corp to move to the new World Trade Center would cap a seismic shift that has taken place in Lower Manhattan over the past decade,” says SPI chairman Larry Silverstein. “This isn't your grandfather's Wall Street.”

Although still the international capital of finance, "Lower Manhattan has also remade itself into the new media and entertainment capital of America,” Silverstein adds. “The area south of Chambers Street now boasts over 800 TAMI (Technology, Advertising, Media, Information) companies, ranging from scores of smaller, ambitious tech start-ups to media companies like Time Inc., Condé Nast and HarperCollins to cutting edge advertising and branding firms like Droga5, Group M and MediaMath.”

Silverstein calls the News Corp./21CF letter of intent “a milestone in the historic effort to rebuild the World Trade Center. 2 World Trade Center is the final tower planned for the 16-acre site, and when it is done, the Lower Manhattan skyline will be fully and beautifully restored. For all New Yorkers who never gave up on Downtown, this makes good on our pledge to see the rebuilding through, and gives me a tremendous sense of pride.”

The news of an LOI also brought plaudits from Kathryn Wylde, president and CEO of the Partnership for New York City. “Congratulations to Silverstein Properties and 21st Century Fox and News Corp on the announcement of their exciting plans to complete the redevelopment of the World Trade Center as a new international media and business hub,” Wylde says in a statement.

The Association for a Better New York also chimed in. “Today's announcement that News Corp and 21st Century Fox have signed a letter of intent with developer Larry Silverstein to anchor 2 WTC is another huge step forward for Lower Manhattan and continues the steady march toward a fully-rebuilt World Trade Center site,” says Bill Rudin, chairman. “Downtown is rapidly becoming a media, entertainment, and tech hub for the city, and the innovation and collaboration that drives our 21st century economy is thriving in Lower Manhattan. We're very happy to see that News Corp and 21st Century Fox recognize this momentum."

Fried Frank, Harris, Shriver & Jacobs is acting as counsel to 21st Century Fox and News Corp. in connection with their non-binding agreement with SPI. The Fried Frank team is being led by real estate partners Jonathan L. Mechanic and Michael J. Werner and real estate special counsel Suzanne deVries Decker.

Instant Insights /

Fox, News Corp. Sign LOI for Downtown Move

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