Finance approved for $9.5bn JFK T1 as URW named commercial manager

By Luke Barras-hill |

URW is the exclusive commercial developer and manager for the $9.5 billion New Terminal One (NTO).

The phased construction of John F. Kennedy International Airport’s (JFK) New Terminal One (NTO) will commence this summer after financial and environmental approvals were approved at the weekend.

The US$9.5 billion ‘world-class’ terminal measures 2.4 million square feet – the largest at JFK – and will be built on sites currently occupied by T1, T2 and the former T3, anchoring JFK’s south side.

The arrivals and departures hall and the first set of new gates is expected to open in 2026.

Upon completion in 2030, the new terminal will boast New York-inspired dining and retail options, lounges, an indoor green space, family friendly amenities, 23 gates, and bright and airy check-in halls and arrivals spaces.

The first phase, including the new arrivals and departures hall and first set of new gates, is expected to open in 2026.

NY Governor Kathy Hochul. Source: governor.NY.gov.

UNIBAIL-RODAMCO-WESTFIELD TO STEER RETAIL

In a statement, New York Governor Kathy Hochul said: “The construction of this new state-of-the-art terminal at JFK is key to our vision for a new era in New York.

“This transformative project is moving forward full steam ahead and when complete will provide for a passenger experience that serves as a model for the unparalleled potential of New York. Congratulations and thank you to everyone who has put in the years of hard work to make this project possible.”

In related news, Unibail-Rodamco-Westfield (URW) has been named as the exclusive commercial developer and manager for the terminal after joining NTO, a consortium of labour, operating and financing partners.

Phased openings are due to begin in 2026, URW confirmed in a statement.

Possessing more than 25 years’ development and management experience at hubs such as Los Angeles International, Chicago O’Hare and JFK, URW’s Airports group has been tasked with leading the project’s non-aeronautical revenue platforms, which includes retail, duty free and other segments.

URW will collaborate with the NTO consortium, which comprises operator and Heathrow shareholder Ferrovial as lead sponsor alongside The Carlyle Group, JLC Infrastructure, and Ullico.

“The New Terminal One is an unparalleled opportunity to work alongside the world-class team that will set the new standard for international and global terminals in the US,” said Dominic Lowe, Chief Operating Officer, US at URW. “We are excited to share our expertise, relationships and creativity to help make the New Terminal One an inclusive and amazing experience for all.”

Mike Salzman, EVP and Group Director, Airports, at URW added: “We are honoured to partner with New Terminal One and the Port Authority of New York and New Jersey (PANYNJ) to take the airport commercial experience to new heights.

“We look forward to working with all stakeholders to deliver a landmark terminal that truly reflects New York City and gives travellers a one-of-a-kind destination along their travel journey.”

The state-of-the-art NTO will engage the local southeast Queens’ community, boosting MWBE (minority/women-owned business enterprises) participation, while channelling a sense of place.

NTO will generate 10,000 jobs, including 6,000 construction roles, according to a statement from the office of Governor Hochul.

Governor Hochul, the Port Authority of New York & New Jersey and Delta Air Lines opened Delta’s new Terminal C at LaGuardia Airport on 4 June. Source: Port Authority of New York and New Jersey.

FOUR PROJECTS; $18BN IN INVESTMENT

In December, PANYNJ’s Board of Commissioners approved an agreement with the NTO.

Last week, the Board voted to approve Ferrovial as the lead investor for the project.

Ferrovial will acquire 96% of The Carlyle Global Infrastructure Fund’s 51% stake in NTO.

The decision to appoint Ferrovial follows hot on the heels of the Port Authority and Delta Airlines celebrating the opening of the new Terminal C at New York’s LaGuardia Airport.

Port Authority Executive Director Rick Cotton said: “The financial close on the first phase of the New Terminal One project at JFK Airport is an historic moment that has been five years in the making.

“We look forward to partnering with Ferrovial, JLC Infrastructure Group, Ullico and Carlyle to build a world-class, top-rank terminal that will be the largest international terminal at JFK and whose $9 billion dollar-plus investment will help drive the region’s recovery.

“We want to thank New York Governor Kathy Hochul, U.S. Senate Majority Leader Chuck Schumer, Deputy Secretary Polly Trottenberg of the U.S. Department of Transportation, U.S. Congressman Gregory Meeks, Queens Borough President Donovan Richards, and the leadership and staff of the Federal Aviation Administration in Washington, in Region 2, and at JFK Airport. Without their support, getting this important project to financial close today would not have been possible.”

The NTO strengthens a flurry of other transformation projects at JFK such as the $3.9bn development of the new Terminal 6, construction of which is expected to begin by the end of the year; the $1.5bn expansion of T4 led by Delta and JFKIAT; and the $425m expansion of T8, led by American Airlines.

Combined, the four projects total $18bn in investment comprising $2.9m in Port Authority capital investment and more than $15bn in private funds.

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