Scentre Group sells 25% stake in Brisbane Westfield to Dexus fund for $683m
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The news: Scentre Group has sold a 25% interest in Westfield Chermside in northern Brisbane to Dexus Wholesale Shopping Centre Fund (DWSF) for $683 million.
The numbers: Scentre said the purchase price represents the shopping centre's book value at 30 June and a valuation capitalisation rate of 5%.
The context: Scentre, which owns and operates Westfields in Australia and New Zealand, will remain as property, leasing and development management for the joint venture.
The group said today's announcement is "another step" in its long-term funding strategy, and reaffirmed its full-year target of 4.3% growth in funds from operations, or 22.75 cents per share.
What they said: "We are pleased to introduce DWSF as our new joint venture partner at Westfield Chermside," said Scentre CEO Elliott Rusanow.
"Sourcing new capital through joint ventures continues to form a key part of the group's capital management strategy," he said.
The source: ASX
