Scentre Group (ASX:SCG) announced that Australian Retirement Trust will acquire a 19.9% stake in Westfield Sydney for $864 million, marking the retirement fund’s entry as a new joint venture partner.
Scentre Group will retain an 80.1% interest and continue to manage the property, leasing, and development.
Scentre Group CEO Elliott Rusanow described the partnership as a "strategic" move, highlighting Westfield Sydney as an iconic CBD destination attracting more than 33 million visitors annually and generating over $1.1 billion in total business partner sales.
He noted the deal follows the recent $1.3 billion joint venture of 50% of Westfield Chermside in Brisbane with two Dexus funds, part of a broader strategy to introduce third-party capital into the group's assets.
Since acquiring and developing Westfield Sydney in 2001, Scentre Group has invested $3.3 billion into the precinct, which includes 97,500sqm of retail and 74,000sqm of office space across three towers.
Following the sale of the office towers in 2019 for $1.5 billion and today's transaction, the group has realised approximately $2.4 billion from Westfield Sydney, leaving a net investment of $0.9 billion.
The remaining 80.1% stake is now valued at $3.5 billion, nearly four times the original capital outlay.
Rusanow said the transactions demonstrate Scentre Group's ability to attract capital, develop premier destinations, and create significant value for securityholders. Settlement of the ART acquisition is expected in early February 2026.
At the time of reporting, Scentre Group's share price was $4.20.