CFS Retail Property Trust Group plans to sell four of its sub-regional shopping centres to Pacific Retail REIT, a newly formed fund that will seek to be listed on the Australian Securities Exchange (ASX).

Altona Gate, Brimbank, Corio and Rosebud Plaza shopping centres, all of which are located in Victoria, are expected to be sold for an agreed price of approximately $446.5 million.

CFX will retain ownership of development land at Altona Gate, which will be subject to a 12 month put and call option with Pacific Retail REIT, assuming the divestment transaction is successful.

“Importantly, the agreements remain conditional on Pacific Retail REIT successfully raising capital via an initial public offering (IPO) and therefore the completion of the transaction remains uncertain,” the company said.

"Assuming that the IPO is successful we anticipate that the transaction will settle in early September 2013."

Michael Gorman, CFX fund manager, said the sale of the centres is consistent with the company’s strategy of actively managing its portfolio and selling non-core assets.

The proceeds from the sale will be initially used to clear debt that will enable the company to pursue value enhancing plans, such as investing in its development pipeline or acquisitions.

“Longer term we expect the overall improvement in the quality of the CFX portfolio will translate into more robust earnings growth for our investors,” Gorman said.

“Other benefits of this transaction include increased exposure to regional shopping centres and retail outlet centres and a decrease in our exposure to suburban Melbourne.”