Scentre’s sale of three shopping centres

Westfield, Queensgate
Westfield, Queensgate
Westfield, Queensgate

ASX-listed Scentre Group has announced the sale of three Westfield shopping centres in New Zealand with a combined gross proceeds of $549 million in two deals, having put them up for sale earlier this year.

Diversified NZ Property Fund, managed by NZX-listed Stride Property, will buy the Queensgate and Chartwell centres and is expected to close in the first half of next year, while Ladstone Holdings has bought the Glenfield mall and is due to settle at the end of the month, Scentre said in a statement to the ASX. The sale of the three centres was at a yield of 8.2 per cent.

Scentre put the three malls and WestCity site up for sale earlier this year as part of a group-wide strategy to own regional malls rather than sub-regional. Last year, it sold 49 per cent of five other NZ centres to Singapore’s Government Investment Corp.

In a statement to the NZX, Stride said Diversified NZ Property will pay $445 million for the two malls, which are subject to Overseas Investment Office approval. Stride manages the assets for the fund, receiving a base management fee of 0.6 per cent up to $750 million under management, and 0.5 per cent after that.

It owns about two per cent of the convertible notes in Diversified NZ Property, and will contribute up to $6 million to seal the deal.

In a separate statement, Stride said it has entered into a deal to sell an industrial property in Auckland for $8 million, 11 per cent above its book valuation at September 30.

Stride shares gained 0.5 per cent to $2.06, while Scentre’s ASX-listed stock gained 0.8 per cent to A$4.05.


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