Australian Retirement Trust (ART) has agreed to acquire a near-20% stake in Westfield Sydney for A$864 million (US$576 million), reinforcing long-term institutional appetite for trophy retail assets in core CBD locations.
The transaction values the asset in line with book value and follows Scentre Group’s broader strategy of recycling capital from mature retail holdings. Westfield Sydney remains one of Australia’s most productive malls, hosting ~270 premium brands and attracting 33+ million visitors annually.
For Scentre, the deal:
- Releases capital while retaining 80% ownership
- Supports its pivot toward mixed-use and residential development
- Advances plans to deliver 5,000+ new homes across rezoned Westfield sites
For ART, the investment highlights:
- Continued preference for stable, inflation-linked income
- Focus on high-quality, defensible urban assets
- Long-duration alignment with retirement liabilities
In a market where office remains under pressure and logistics is fully priced, prime retail in dominant locations is quietly regaining favour among pension capital.