SYDNEY: Westfield Group has announced plans for a corporate restructure, with the key change being the creation of a new entity, the Westfield Retail Trust.
Westfield Group chairman Frank Lowy explained Westfield Retail Trust would become a joint venture partner – along with Westfield Group – in the latter's existing 54 shopping centres across Australia and New Zealand. The trust's focus would be on maximising long term returns from the domestic market.
The planned restructure includes the listing of Westfield Retail Trust as a separate entity on the Australian Stock Exchange, though Westfield Group insisted it would maintain “a close ongoing relationship” with the trust.
Lowy explained the proposal was the latest in a series of capital restructures Westfield Group has undertaken in its 50 year history.
“The new trust will provide existing Westfield Group securityholders, as well as new investors, the opportunity to invest in the pre-eminent retail property portfolio in Australia and New Zealand. It responds directly to significant market demand for a domestic trust focussed on investing in high quality retail real estate, with conservative gearing and income sourcing primarily in Australian dollars,” Lowy said.
Under the proposal, Westfield Group's activities would be increasingly focussed on the company's international assets and opportunities.
A meeting to approve the restructure is scheduled for December 9.
Westfield Group also announced its review of the quarter to September 30, with the company recording retail sales growth in all markets and 97.3 per cent of its global property portfolio leased.