Steven Lowy’s big hopes for OneMarket technology spin-off

Westfield co-chief executive Steven Lowy said OneMarket was in talks to win more clients

Steven Lowy at the Westfield AGM on Thursday. Picture: AAP

Westfield co-chief executive Steven Lowy yesterday flagged that OneMarket, the technology company that he will chair once it is spun out of the retail property behemoth, was in talks to win more clients as he defended the company’s prospects.

The strategy of the group, which originally grew out of Westfield’s retail-focused technology platform, was questioned by one shareholder at yesterday’s meeting.

Mr Lowy told the meeting the business had been overhauled since 2016, when Don Kingsborough was appointed president of Westfield’s digital and data business, with a greater emphasis placed on technology and engineering skills.

The business was rebranded as OneMarket last year and the company has since weighed up how best to spin it out from Westfield.

Mr Lowy said the timing was being driven by sale of the larger Westfield business to French company Unibail-Rodamco and it was well positioned with about $160 million in cash and agreements were in place with newly merged company and US group Nordstrom.

“We are currently in negotiations with [additional] real estate and venue partners,” he said, flagging plans to update the market on its progress shortly.

The company also had more revenue streams, including advertising and providing advice on shoppers, that it would look to tap.

Westfield has poured about $200m into the technology and bought businesses, including one in which Mr Kingsborough had an interest.

Mr Lowy acknowledged there had been employee turnover as there was a switch to a greater focus on technological and engineering skills and the business had become an outwardly focused platform.

“This is an early-stage company that is coming out of a very big company and it is being demerged at an early stage in a public forum,” Mr Lowy said.

“Most companies of this nature are in private hands.”

He predicted it would be attractive to new sets of investors.

“I think over time — maybe a short time — you will see the register change from real estate investors — to tech investors, or a combination of both,” he said.

OneMarket is expected list on the Australian Stock Exchange on June 11.