Federation Centres will sell three shopping centres in Tasmania to SCA Property Group for $85m in a deal expected to settle later this month, as it streamlines the business following its $22 billion merger with Novion Property Group.
The sale of two convenience centres, Glenorchy Central and Meadow Mews, is unconditional, Federation said, and represented the majority of the total deal.
Meanwhile, the sale of the subregional shopping centre in Burnie is dependent on certain lease contracts, the group said.
But the three shopping centre sales are a package deal, Federation said, requiring all to be finalised for it to be completed.
Federation said the $85m sale price was a 4 per cent premium to the combined book value of the properties.
Federation will remain in the Tasmanian market, thanks to properties acquired in its recent merger.
"As a result of the merger with Novion Property Group, we have an ongoing exposure to Tasmania through the regional shopping centre Eastlands in Rosny Park and the subregional shopping centre in Northgate in Glenorchy," chief executive Steven Sewell said.
Mr Sewell said the group would continue to restructure its portfolio with both sales and acquisitions.
Earlier this week, Federation shook up its management structure as it implements its $22bn merger with Novion, which took place last month.
As part of the revamp, the roles of executive general manager, investments and chief financial officer were combined, with Federation chief financial officer Tom Honan departing the business, amongst other changes.
SCA placed its shares in a trading halt this morning, as it prepares to raise capital to purchase the shopping centre portfolio.