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Scentre Group, owner of the Westfield brand, has agreed to sell a 50% stake in Westfield Mt Gravatt in Queensland to Australian Retirement Trust for AUD 882.5 million, equivalent to USD 632.22 million. The transaction represents a 3.5% premium to the property's December 2025 book value. The deal is part of Scentre's strategy of attracting third-party capital through joint ventures while retaining exposure to its properties. Westfield Mt Gravatt recorded more than 17 million customer visits in the previous year and generated business partner sales of over AUD 1 billion. Scentre will continue managing the shopping centre.
Scentre Group said Australian Retirement Trust will acquire a 50% stake in its Westfield Mt Gravatt shopping centre in Queensland for AUD 882.5 million, or USD 632.22 million. The transaction values the property at a 3.5% premium to its December 2025 book value.
The deal comprises a 50% direct property interest valued at AUD 870 million, based on a 5.50% property yield, and a 50% interest in adjacent land valued at AUD 12.5 million. Scentre will retain management responsibilities for the shopping centre.
Westfield Mt Gravatt attracted more than 17 million customer visits in the previous year and recorded business partner sales of more than AUD 1 billion, according to Scentre.
The transaction is part of Scentre's long-term strategy of bringing third-party capital into its assets through joint ventures. Over the past 13 months, the group has attracted AUD 3.1 billion in third-party capital through partnerships involving its properties.
Datt Group Managing Director Emanuel Ajay Datt said selling assets at yields below the company's cost of capital can add value, while retaining a 50% interest and the full property fee streams allows Scentre to maintain exposure to the asset. He added that the transaction would also release capital that could be redeployed into higher-value opportunities.
Datt said the deal was expected to strengthen Scentre's ability to distribute income to shareholders.
Australian Retirement Trust has previously invested in Scentre's portfolio. It acquired an almost 20% interest in Scentre's flagship Westfield Sydney shopping centre for AUD 864 million last year.
The transaction comes as other Australian shopping centre owners remain active in acquisitions. Vicinity Centres, which owns properties including Sydney's Queen Victoria Building, acquired Eastern Creek Quarter in western Sydney from Frasers Property for AUD 400 million in May 2026.
Scentre shares have traded between AUD 3.28 and AUD 4.24 over the past year and remain more than 13% below their January peak. The shares closed flat following the announcement.
Source Reuters
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