Transaction values mall at A$4.3 billion
The Australian Retirement Trust will acquire a near 20% stake in Scentre Group’s flagship Westfield Sydney shopping mall for A$864 million, the shopping centre owner said on Tuesday. The transaction values the property in line with its June 2025 book value and reflects continued institutional interest in prime retail assets.
Westfield Sydney, located in the central business district, is home to around 270 local and international premium retail brands and attracts more than 33 million visitors each year, underscoring its position as one of Australia’s most prominent shopping destinations.
Part of a broader portfolio reshaping
The deal follows Scentre Group’s earlier sale of a combined 50% stake in Brisbane’s Westfield Chermside to property developer Dexus for A$1.3 billion over the course of this year. Together, the transactions highlight Scentre’s strategy of recycling capital from mature retail assets.
After the sale to Australian Retirement Trust, Scentre’s net investment in Westfield Sydney will stand at approximately A$900 million. Its remaining 80.1% stake is valued at about A$3.5 billion, representing roughly a fourfold increase since the group acquired the asset.
Shares steady as focus shifts to housing
Scentre Group shares were largely unchanged at A$4.205 in early trading, slightly underperforming the broader ASX 200 index, which was up around 1% at the same time.
Management said the partial divestment frees up capital and supports the group’s longer-term push to transform parts of its extensive land bank into large-scale residential developments. Scentre controls around 670 hectares of land, which it aims to use to deliver more than 5,000 new homes.
Residential development plans advance
As of August, the company had secured rezoning approvals for Westfield Hornsby in Sydney and Westfield Belconnen in Canberra. These approvals allow for the construction of more than 4,000 residential units in total, marking a significant step in the group’s diversification beyond traditional retail.
“We have the potential to make a significant contribution to housing supply at our locations across Australia and New Zealand,” Scentre said in its 2024 annual report, reinforcing its ambition to play a broader role in addressing housing demand.
