Scentre to Sell $456 Million Westfield Chermside Mall Stake to Dexus-Managed Fund

By Stuart Condie

SYDNEY--Westfield mall operator Scentre agreed to sell a 25% stake in one of its Brisbane centers to a new Dexus-managed fund for about $456 million.

Scentre, which operates the brand in Australia and New Zealand, on Friday said it had agreed to sell the stake in its Westfield Chermside mall to the Dexus Strategic Investment Trust for 683 million Australian dollars.

Dexus said it would contribute an initial A$170 million into the new fund, which it aims to reduce to A$50 million over time. Scentre is among third-party investors in the fund, although it said it expects its A$50 million contribution to be temporary.

The Chermside purchase price represents Scentre's book value at June 30 a valuation capitalization rate of 5.00%.

"This is consistent with our long-term capital management strategy and provides the group with further capital to pursue our strategic objectives," Scentre Chief Executive Elliott Rusanow said.

This week, Australian newspapers reported that Scentre was about to sell a stake in one of its prime Sydney locations.

Write to Stuart Condie at [e-mail]

(END) Dow Jones Newswires

12-11-25 1706ET