By a staff reporter
CFS Retail Property Trust Group Ltd will sell four sub-regional shopping centres to newly formed fund Pacific Retail REIT ahead of a planned listing on the Australian Stock Exchange.
In a statement to the Australian Securities Exchange, CFS Retail said it would divest four Victorian centres – Altona Gate, Brimbank, Corio and Rosebud Plaza – for a price of approximately $446.5 million, in line with the group's book value.
"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," CFS Retail said.
"Assuming that the IPO is successful we anticipate that the transaction will settle in early September 2013."
Michael Gorman, CFS Retail fund manager said the sale of the centres was in line with the group's strategy of actively managing its portfolio and selling non-core assets.
CFS Retail said proceeds will be used to retire debt, as well as providing the group flexibility in pursuing "value enhancing initiatives such as investing in its development pipeline or acquisitions".