Westfield operator sells four centres

Scentre Group expects $783 million from the sale of four Westfield shopping centres, which it plans to use for upgrades of other centres.

Westfield's Australian business is selling four shopping centres and funnelling the proceeds into redevelopments.

Scentre Group, which operates Westfield shopping centres in Australia and New Zealand, expects to reap $783 million from the sale of its Figtree, Warrawong and North Rocks centres in NSW and the Strathpine centre in Brisbane.

Chief executive Peter Allen said a review of the centres found their future returns for the company would be weaker than expected, and the money could be better deployed elsewhere.

"The ability for us to increase that return, either through redevelopment or expansion was limited in those assets," he told AAP.

The funds will go into the ongoing redevelopment of its $30 billion worth of centres and search for new opportunities.

Scentre is on the lookout for new sites or existing centres in growth corridors like Sydney's south west and north west Melbourne, Mr Allen said.

Scentre was spun off from Westfield in 2014 to allow the later to focus on the US, UK and European markets.

Scentre made a profit of almost $1.1 billion in the six months to June 30 and said specialty retail sales - a key driver of rental income - rose 6.1 per cent in that period.

During July, sales were up more than seven per cent.

Scentre maintained its guidance for full year funds from operations of 22.5 cents per security, up 3.5 per cent from a year ago, and distributions of 20.9 cents per security.

The company's shares rose 13 cents to $3.74.

SHOPPING CENTRES DELIVER FOR SCENTRE

* Net profit of $1.096b

* Funds from operations of $604m

* Interim distribution of 11.38 cents


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Source: AAP


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