The Scentre Group (ASX: SCG) share price will be on watch on Tuesday after the company announced Australian Retirement Trust will become a joint venture partner at Westfield Mt Gravatt, selling a 50% interest for $882.5 million. The deal, at a premium to book value, strengthens Scentre Group's capital position and strategic partnerships.
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What did Scentre Group report?
- Sale of a 50% interest in Westfield Mt Gravatt, Brisbane, for $870.0 million at a 5.50% capitalisation rate
- Additional sale of a 50% stake in adjacent sundry land for $12.5 million
- Total gross proceeds of $882.5 million, representing a 3.5% premium to book values as at December 2025
- Scentre Group will retain 50% ownership and continue as property, leasing and development manager
- Over $3.1 billion of third party capital announced in the past 13 months via joint ventures
What else do investors need to know?
The transaction is subject to clearance by the Australian Competition & Consumer Commission, and will bring in new capital partners, furthering Scentre Group's strategy of joint venturing assets. Westfield Mt Gravatt remains a significant asset, being one of the most-visited centres in southeast Queensland and generating over $1.0 billion in annual business partner sales.
Scentre Group has emphasised its ambition of creating long-term value for securityholders by introducing new capital and leveraging strategic partnerships. The Group continues to manage 42 Westfield destinations across Australia and New Zealand, positioning itself as a leader in retail property management and development.
What did Scentre Group management say?
Scentre Group CEO Elliott Rusanow said:
We are very pleased to extend our strategic partnership with Australian Retirement Trust. Westfield Mt Gravatt is one of the most popular centres in south-east Queensland, visited by more than 17 million customers last year and generating total business partner sales in excess of $1.0 billion. Introducing new capital, through joint venturing our assets, forms a key part of our long-term strategic plan.
In the last 13 months, we have announced approximately $3.1 billion of new third party capital coming into the Group through the joint venturing of our assets. Today's announcement continues to demonstrate our ability to source capital to pursue the Group's strategic objectives of creating long term value for securityholders.
What's next for Scentre Group?
The joint venture with Australian Retirement Trust awaits ACCC approval, after which Scentre Group expects to utilise the capital inflow to further its strategic objectives. The Group plans to continue sourcing third-party capital and building partnerships, with a focus on maximising asset value and enhancing returns for securityholders.
Scentre Group will remain the property, leasing, and development manager at Westfield Mt Gravatt, emphasising its commitment to operational excellence and sustained growth across its network of Westfield centres.
Scentre Group share price snapshot
The Scentre Group share price has been out of form over the past 12 months, declining by around 8%.
