Scentre Group targets 25,600 new homes amid major asset sale

Scentre Group, the owner of Westfield shopping centers, has announced an ambitious residential development plan to build up to 25,600 homes across Australia. CEO Elliott Rusanow stated the company increased its target from 20,200 units to meet the severe national housing shortage, despite recent market stagnation.

Proposed projects include developments at Westfield Warringah in Sydney, Westfield Eastgardens, Westfield Chermside in Brisbane, and Westfield West Lakes in Adelaide. The group aims to leverage its strategic land reserves to drive economic activity around its retail hubs.

In a related major transaction, Australian Retirement Trust (ART) has agreed to acquire a 50% stake in the Westfield Garden City shopping center in Brisbane from Scentre Group for approximately 8.825 billion AUD. If approved by the ACCC, this would represent one of Australia’s largest single-asset retail transactions this year.

Separately, ART has significantly increased its exposure to the Japanese Yen, betting that the market has underestimated the likelihood of interest rate hikes by the Bank of Japan. The fund manager has also increased its holdings in Japanese equities, specifically targeting the financial sector.