The Scentre Group (ASX: SCG) share price is in focus after the company announced a new 25% joint venture partner for Westfield Chermside, Brisbane, at a transaction value of $683 million and confirmed that the deal matches its book value at 30 June 2025.
Image source: Getty Images
What did Scentre Group report?
- A new Dexus managed fund will purchase a further 25% interest in Westfield Chermside, Brisbane for $683 million.
- The sale price equals Scentre Group's book value at 30 June 2025, reflecting a capitalisation rate of 5.00%.
- Scentre Group will retain a 50% direct ownership and continue as property, leasing and development manager.
- Scentre Group will invest $50 million in the new Dexus fund as a temporary foundation investor.
- Settlement is expected before the end of 2025.
What else do investors need to know?
This transaction follows the earlier deal in July 2025, when Dexus Wholesale Shopping Centre Fund also became a 25% joint venture partner in Westfield Chermside. After these transactions, Scentre Group will have introduced approximately $1.3 billion of new capital into the group.
The company says this added capital aligns with its long-term capital management strategy. Scentre Group remains focused on delivering sustainable growth and pursuing its ongoing strategic priorities. The $50 million investment in the Dexus fund is intended to be temporary.
What did Scentre Group management say?
Scentre Group Chief Executive Officer Elliott Rusanow said:
Following these transactions, approximately $1.3 billion of new capital will have been introduced into the Group.
This is consistent with our long-term capital management strategy and provides the Group with further capital to pursue our strategic objectives and deliver sustainable growth for our securityholders.
What's next for Scentre Group?
Settlement for the sale is anticipated by the end of the year, and Scentre Group aims to use the new capital to support future strategic initiatives. The company continues to manage and develop Westfield destinations throughout Australia and New Zealand.
With the additional funding, Scentre Group plans to strengthen its balance sheet while focusing on growth and value creation for investors. Maintaining its role as property manager at Westfield Chermside, Scentre Group remains committed to long-term asset management and community development.
Scentre Group share price snapshot
Over the past 12 months, Scentre Group shares have risen 20%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.
