Westfield's local spin-off Scentre Group has been inundated with proposals about potential asset sales, and Deutsche Bank has suggested the group could sell off a stake in its $1.65 billion Chermside development in Brisbane.
On Deutsche’s reckoning, it could reap $68 million in development profits from selling a half stake in Chermside during its development phase, as part of an overall $2.2bn of asset sales over the next two financial years.
A bank analyst added that a potential sale of a half stake in Scentre’s $3bn New Zealand portfolio could result in some small earnings dilution. Mooted bidders GIC Real Estate of Singapore and Canada’s CPP Investment Board have been teaming up to buy retail assets elsewhere in the world.
Overall, Deutsche’s analysts were optimistic Scentre could effectively cut gearing from just over 37 per cent to about 33 per cent, without even touching its New Zealand holdings.
Selling stakes in development projects would contrast with reports the group may put the $1bn worth of office towers above Westfield Sydney on the block, or even that stakes in assets like Westfield Bondi and Sydney, which would set a benchmark for retail property in Australia, will come to market.