By Robert GottliebsenNow, to the Lowy family, which is a strange...

By Robert Gottliebsen
Now, to the Lowy family, which is a strange mixture of the conservatism of Murdoch, Buffett and Kerry Packer and the naked aggression of James Packer and Lachlan Murdoch. Like the Murdochs and the Packers, the Lowy family has been at the top of the Australian wealth tree for a long time.

The family’s wealth is in Westfield Holdings, the world’s biggest shopping centre owner. It goes into the slump with modest gearing but the problem with Westfield is that the young Lowys are embarking on a series of major shopping centre expansions and if they continue the company will need to either raise equity or find itself much more highly leveraged than current practice regards as prudent. Again, with the benefit of hindsight, it would have been better to have had cash at the ready to buy the best centres from forced sellers. I have set out the Lowy’s expansion programs in Eureka Report (see Can Westfield beat the sceptics?).

It is truly remarkable that the old masters are brilliantly placed for this slump. Their sons moved at the peak of the market, although they have not blown up as has happened in many American and UK families, where the next generation has taken big risks and lost much of the family fortune.