Australian Retirement Trust to buy 19.9% interest in Westfield Sydney
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The news: Scentre Group has announced that Australian Retirement Trust will become a joint venture partner in its Westfield Sydney property, purchasing a 19.9% stake for $864 million.
Settlement is expected in early February.
The numbers: Scentre Group will own the remaining 80.1% of Westfield Sydney. The deal is representative of book value and a valuation capitalisation rate of 4.69%.
Westfield Sydney is visited by 33 million customers annually with business partner sales above $1.1 billon each year, according to Scentre Group.
Context: The deal follows a similar joint venture between Scentre Group and two Dexus funds in Brisbane for a 50% stake in Westfield Chermside in a deal worth $1.3 billion.
The Westfield Sydney precinct was acquired by Scentre Group in 2001 after which it undertook a redevelopment and invested about $3.3 billion. In 2019, the business sold off three office towers for $1.5 billion, bringing the total realisation including the new joint venture to $2.4 billion from the property.
What they said: “Introducing new capital, through joint venturing our assets, forms a key part of our long-term strategic plan,” Scentre Group CEO Elliott Rusanow said.
“During 2025, we have announced approximately $2.2 billion of new third party capital coming into the group through the joint venturing of our sets.”
He said the net investment in Westfield Sydney, following the office sales and the new agreement, is now $0.9 billion with the remaining 80.1% interest valued at $3.5 billion.
The source: ASX
