NEW YORK CITY-Westfield Properties and the Port Authority are close to a $1.2 billion joint venture deal for the retail portion of the new World Trade Center site, the New York Post is reporting this mornng. The venture, to be finalized sometime in the next 90 days, would give Westfield the right to develop and lease about 455,000 square feet of retail at two towers.

Westfield had been working with Silverstein Properties and the Port Authority to update the mall at the WTC prior to the Sept. 11, 2001 terrorist attacks. The Sydney, Australia-based retail giant backed off from the update plan after the attacks, but kept an option to move forward with retail plans there.

Sources indicate the retail portion could be leased at hundreds of dollars per square foot. The deal includes 365,000 square feet at the first planned tower when it opens in 2015, with another 90,000 square feet at the future 2 World Trade Center building. Read the Post story here.