Last Updated on September 30, 2024 by Vlad
Frank Lowy’s rise to wealth is a remarkable story of perseverance and business acumen. Born in Czechoslovakia in 1930, Lowy escaped the Nazi occupation as a child and eventually made his way to Australia. In this new land, he seized an opportunity in Sydney’s growing suburbs.
Frank Lowy co-founded Westfield, a global shopping centre company, which grew to manage US$29.3 billion in assets across several countries. His journey began modestly in 1959 when he opened a small deli in Blacktown, Sydney. This venture laid the foundation for Westfield Development Corporation, which transformed suburban shopping in Australia and beyond.
Lowy’s success did not come overnight. He took calculated risks, worked hard, and expanded steadily. Westfield went public in 1960 and continued to grow under his leadership. Lowy’s keen eye for property development helped Westfield become a dominant force in the shopping centre industry, making him a fixture on rich lists for decades.
Early Life and Background
Birth and Family
Frank Lowy was born on 22 October 1930 in Fiľakovo, Czechoslovakia (now Slovakia), into a Jewish family. His father, Hugo, ran a small grocery store. Life drastically changed for the family when Nazi Germany invaded in 1938. Frank was only seven years old when they fled their home.
In 1944, Hugo was deported to Auschwitz concentration camp, where he tragically died. This early trauma shaped Lowy’s resilience and determination, qualities that would later fuel his success.
Migration to Australia
After World War II, Frank began a new chapter in his life. In 1952, at the age of 21, he migrated to Australia, reuniting with his mother and siblings who had also survived the war. He arrived in Sydney with little money and no knowledge of English but was determined to build a better life.
Education and Military Service
Frank’s formal education was interrupted by the war, so he didn’t complete high school. However, he gained practical knowledge from his work experiences in Australia and his time in the Golani Brigade, an elite unit of the Israeli Defence Forces. This military service instilled discipline and leadership skills, which would serve him well in business.
Entering the Business World
Early Ventures
Frank Lowy’s early ventures laid the foundation for how Frank Lowy made his money. Upon arriving in Australia, Lowy began working as a delivery boy in Sydney’s western suburbs. Soon after, he and fellow immigrant John Saunders opened a delicatessen in Blacktown. This humble deli led to their first shopping centre project in 1959, marking Lowy’s initial foray into retail property.
Founding Westfield
In 1960, Lowy and Saunders founded Westfield Development Corporation, named after their project in Westfield, New South Wales. Focusing on the suburbs, they developed shopping centres in areas like Hornsby and Burwood. In the same year, Westfield went public on the Sydney Stock Exchange, allowing the company to expand more rapidly.
Overcoming Challenges in Business
Frank Lowy’s rise to success was not without challenges. Building a global retail empire like Westfield came with many obstacles, including economic downturns and competitive pressures. One of the major challenges came during the global financial crisis of 2008. The downturn in the economy affected retail sales and real estate values, forcing Lowy to adapt quickly to safeguard Westfield’s interests.
Lowy also faced challenges in expanding Westfield internationally. Breaking into the American market, for example, required navigating a highly competitive retail environment. By strategically acquiring existing shopping centres and partnering with other property developers, Lowy managed to establish Westfield as a formidable player overseas.
Through all these difficulties, Lowy remained resilient. His ability to take calculated risks and pivot in response to market changes allowed Westfield to thrive in both good times and bad. This adaptability was key to his long-term success.
Westfield’s Expansion
Domestic Growth
Westfield’s success in Australia was driven by Lowy’s sharp understanding of the post-war suburban boom. The company expanded rapidly through the 1960s and 1970s, developing larger and more versatile shopping centres. Cinemas, food courts, and entertainment areas became staples in Westfield centres, turning shopping into a leisure experience.
Changing the Face of Retail
Frank Lowy didn’t just build shopping centres; he revolutionised the concept of what a shopping centre could be. Under his leadership, Westfield pioneered the idea of transforming shopping into an experience. While traditional shopping centres focused only on retail, Westfield centres incorporated cinemas, food courts, and entertainment areas. This approach turned shopping into a leisure activity, appealing to a broader range of customers.
By expanding the role of shopping centres beyond just buying goods, Lowy’s innovations helped shape consumer behaviour and the retail industry at large. This model was adopted globally, influencing retail spaces in the US, UK, and beyond. The integration of entertainment and lifestyle options made Westfield a destination rather than just a place to shop, forever altering the retail landscape.
International Ventures
Lowy’s ambition didn’t stop at Australia. Westfield ventured into the US market in 1977, acquiring properties in California. By the 2000s, it was a key player in the US retail landscape, with flagship centres in New York, Los Angeles, and San Francisco. In 2008, Westfield opened the massive Westfield London centre, further solidifying its global presence.
By 2017, Westfield managed assets worth US$29.3 billion across Australia, the US, and the UK.
Key Business Strategies
Acquisitions and Partnerships
Lowy’s aggressive acquisition strategy played a pivotal role in Westfield’s growth. He acquired numerous shopping centres in prime locations across Australia, and later, in the US and UK. These strategic moves helped Westfield build a portfolio of premium retail properties.
Lowy also pursued joint ventures, allowing Westfield to enter international markets with lower risk and higher potential rewards.
Corporate Restructuring
Frank Lowy was not afraid to restructure Westfield to improve its efficiency. In 2014, he split Westfield’s Australian and New Zealand assets from its international operations, creating two distinct entities.
In 2017, he orchestrated the sale of Westfield to Unibail-Rodamco for $16 billion, merging its US and UK assets with Europe’s largest property group. This move marked the end of an era and cemented Westfield’s place as a global retail giant.
Frank Lowy’s Leadership Philosophy
Frank Lowy’s leadership style was marked by a strong work ethic, a willingness to take risks, and a deep understanding of market trends. His approach to leadership was hands-on; he was known for visiting construction sites and meeting with local businesses during the early days of Westfield’s development. Lowy believed in calculated risk-taking, focusing on long-term rewards over short-term gains.
One of his key strengths was recognising potential in locations others overlooked. Lowy’s ability to see growth opportunities in suburban retail markets, both in Australia and internationally, allowed him to build Westfield into a global powerhouse. He also valued adaptability, constantly restructuring Westfield to ensure it remained agile in the face of changing market conditions.
Lowy’s leadership philosophy was also shaped by his immigrant experience. Having arrived in Australia with little, he understood the value of hard work, perseverance, and the importance of giving back to the community.
Public Offerings and Shareholdings
Initial Public Offering
Westfield went public in 1960, giving it access to capital for expansion. Frank retained a large stake in the company, maintaining control while tapping into investor funds. Over time, more public offerings and corporate mergers helped Westfield grow exponentially.
Stock Market Performance
Under Lowy’s leadership, Westfield’s stock performed well, increasing in value alongside the company’s global expansion. In 2018, the sale of Westfield allowed shareholders, including Lowy, to benefit from the company’s success.
Succession Planning and Family’s Continued Legacy
Frank Lowy was mindful of the importance of succession planning, especially as his empire expanded. Early on, he involved his sons Peter and Steven in the management of Westfield. Both played key roles in the company’s day-to-day operations, ensuring that the business remained in capable hands when Lowy eventually stepped down.
In 2018, when Westfield was sold to Unibail-Rodamco, the sale marked the end of the Lowy family’s direct involvement in the company. However, the legacy did not stop there. The Lowy family has continued to influence business and philanthropic efforts in Australia and beyond. Peter and Steven, alongside their father, have been involved in new ventures, charitable foundations, and property investments, ensuring that the Lowy name remains synonymous with success and innovation.
This careful succession planning ensured not only the preservation of the family’s wealth but also the continuation of their entrepreneurial spirit for future generations.
Philanthropy and Community Engagement
Charitable Foundations
Frank Lowy and his family are renowned for their generosity. They have donated over A$350 million to various causes, including medical research, education, and international policy development. Their philanthropic efforts include the Lowy Institute and the Lowy Cancer Research Centre, among others.
Support for the Arts
In addition to his charitable work, Lowy has been a strong supporter of the arts, contributing to major galleries, museums, and theatre companies across Australia.
Awards and Recognition
Frank Lowy’s contributions to business and philanthropy have not gone unnoticed. He has received numerous honours throughout his career, solidifying his legacy as one of the most influential figures in global retail and philanthropy.
In 2000, Lowy was awarded the Companion of the Order of Australia (AC), one of the country’s highest honours, for his service to business, philanthropy, and the arts. In 2017, Lowy was knighted by Queen Elizabeth II, becoming Sir Frank Lowy in recognition of his extraordinary contributions to the business world and his charitable work.
Additionally, Lowy has been inducted into various halls of fame, including the Australian Business Hall of Fame, and has received numerous awards from industry bodies acknowledging his visionary leadership and impact on the retail sector.
These accolades serve as a testament to his outstanding contributions not only to business but also to the broader community.
Frank Lowy’s Net Worth
Wealth Accumulation
How did Frank Lowy get rich? Much of Lowy’s wealth has from the Westfield Group’s success. In 2010, he was Australia’s richest person, with a net worth of A$5.04 billion, a figure that climbed to A$8.26 billion in 2017.
The AFR estimates Frank Lowy’s current net worth at A$9.72 billion, making him the 14th richest person in Australia. Forbes estimates Lowy’s wealth at $6.5 billion as of September 2024.
Diversified Investments
Beyond Westfield, Lowy has investments in commercial real estate, residential properties, and other asset classes. His diversified portfolio has helped maintain his wealth, which Forbes estimates at $6.5 billion as of September 2024.
Legacy and Influence
Frank Lowy’s journey from a Holocaust survivor to one of Australia’s wealthiest people is a testament to his resilience, vision, and business acumen. Under his leadership, Westfield set new standards for retail centres globally, and his philanthropic work continues to leave a lasting impact.
The Lowy Institute, a think tank he founded, plays a significant role in shaping international policy discussions. Meanwhile, his family remains deeply involved in business, ensuring that the Lowy name remains synonymous with success in Australia.
Lessons from Sir Frank Lowy
Valuable lessons from Frank Lowy’s life can inspire resilience, strategic thinking, and innovation in both personal and professional endeavours.
Resilience in the Face of Adversity
Lowy overcame significant challenges, including surviving the Holocaust and starting life over in a new country with little. His ability to bounce back from hardship and rebuild his life is a powerful example of resilience and determination.
Spotting Opportunities in Emerging Markets
Lowy had a keen eye for recognising potential in suburban retail markets. He saw the suburban boom in Australia and seized the opportunity to build shopping centres in growing areas, capitalising on trends others missed. This teaches us the importance of seeing opportunities where others might not.
Calculated Risk-Taking
Lowy wasn’t afraid to take risks, but they were always calculated. He expanded Westfield carefully, entering international markets after thorough research and planning. This shows the importance of balancing risk with preparation and strategy.
The Power of Innovation
By transforming shopping centres into destinations for leisure with cinemas and entertainment areas, Lowy revolutionised the retail industry. His success illustrates how innovation and thinking beyond the traditional can lead to tremendous growth.
Adaptability
Lowy’s willingness to restructure Westfield multiple times, including selling it at its peak, shows the value of being adaptable in business. Being open to change and making bold decisions is essential for staying relevant and successful over time.
Giving Back
Lowy’s philanthropic efforts, through donations to medical research, education, and the arts, teach the importance of using success to give back to society. His commitment to improving communities highlights the value of social responsibility.
Frequently Asked Questions
What were Frank Lowy’s key business strategies that led to his wealth accumulation?
Frank Lowy focused on shopping centre development as his main business strategy. He saw potential in suburban retail spaces and invested heavily in this area.
Lowy also expanded internationally, taking Westfield to the United States and Europe. This global outlook helped grow his wealth substantially.
How has Frank Lowy’s migration to Australia influenced his business success?
Lowy’s experience as a migrant gave him a unique perspective on business opportunities in Australia. He arrived in the country with little, but quickly identified gaps in the retail market.
His immigrant background likely contributed to his strong work ethic and determination to succeed in his new home.
What are some of Frank Lowy’s significant contributions to the Australian economy?
Lowy’s shopping centres created thousands of jobs across Australia. Westfield’s success also attracted international investment to the country.
He has been a major philanthropist, donating to various Australian causes. Lowy has also supported foreign policy initiatives, influencing Australia’s international relations.
How has Frank Lowy managed the succession of his business empire?
Lowy involved his sons Peter and Steven in Westfield’s operations from an early stage. This family involvement ensured a smooth transition of leadership.
In 2018, Lowy sold Westfield, marking the end of his direct involvement in the company. This move was seen as a strategic decision for the future of the business.