Centro Retail is looking to sell up to a 50 per cent stake in three of its best shopping centres – Galleria in Perth, The Glen in Melbourne and Colonnades in Adelaide.
Steven Sewell, CRF chief, said the announcement heralds an important step in the evolution of the group.
“The decision approved by the board to pursue a strategic alliance on a selected number of our existing higher value shopping centres, using the capital realised to unlock the substantial latent development upside that exists in portfolio, is an exciting strategic initiative,” he said.
The company has reassured that the group’s portfolio is favourable with industry benchmarks – recording high occupancy, positive rental rate growth and net operating income in recent years.
The existing portfolios are mostly anchored by at least one national supermarket and have a tenant mix with a skew towards food, services and non-discretionary retail offers.
CRF has also confirmed that despite the announcement the group’s forecast for FY12 remains unchanged.