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Scentre Group has agreed to sell a near 20% stake in its flagship Westfield Sydney mall to the Australian Retirement Trust for AUD 864 million, or about USD 575.68 million. The deal values the asset in line with its June 2025 book value and follows earlier asset sales, including a major stake sale at Westfield Chermside. Scentre will retain an 80.1% interest in Westfield Sydney and plans to use the capital to support residential development across its land holdings.
An Australian retirement fund has agreed to acquire a near 20% stake in Scentre Group's flagship Westfield Sydney shopping mall, marking another large transaction involving one of the country's most valuable retail assets. Scentre Group said the Australian Retirement Trust will invest AUD 864 million, equivalent to about USD 575.68 million, for the interest in the mall located in Sydney's central business district. Advertisement
The transaction values the asset in line with its book value as recorded by Scentre Group as of June 2025. The deal follows Scentre's earlier decision to monetise mature assets, including the sale of a combined 50% stake in Westfield Chermside in Brisbane to property developer Dexus for a total of AUD 1.3 billion over the past year.
Westfield Sydney remains one of the country's highest-profile retail destinations, housing around 270 domestic and international premium brands. The centre attracts more than 33 million visitors each year, supported by its central location and strong tourist and commuter footfall.
Following the transaction, Scentre Group said its net investment in Westfield Sydney stands at about AUD 900 million. The company retains an 80.1% holding in the asset, which is valued at approximately AUD 3.5 billion. This represents a fourfold increase in value since Scentre first acquired the property, underlining the long-term appreciation of prime retail real estate in central Sydney.
Scentre Group owns and operates 42 Westfield shopping centres, largely concentrated across Australia. Its shares were trading largely flat at around AUD 4.205 during the session, while the broader ASX 200 index was up about 1%.
The company said the partial divestment is intended to release capital and support its wider strategy of redeveloping surplus land into residential projects. Scentre holds about 670 hectares of land across its portfolio, which it plans to use to deliver more than 5,000 new homes over time.
Progress on this strategy has already been made. By August, the group had secured rezoning approvals for Westfield Hornsby in Sydney and Westfield Belconnen in Canberra. These approvals allow for the development of more than 4,000 residential units in total, signalling a shift toward mixed-use developments at selected retail sites.
In its 2024 annual report issued earlier this year, Scentre Group said it believes its retail locations across Australia and New Zealand place it in a strong position to contribute meaningfully to housing supply over the coming years.
Source Reuters
5th Jun, 2025
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