Woolworths aims to sell retail sites

Woolworths Australia chief executive and managing director Michael Luscombe. Photo / Kenny Rodger

Woolworths Ltd plans to offload A$900 million ($1108.3 million) of retail sites from its property portfolio.

The retailing giant plans to sell 30-plus neighbourhood and sub-regional shopping centres, then lease back the sites on a long-term basis. Some of the properties in the portfolio include Ashgrove Marketplace in Queensland, Carnes Hill Marketplace in New South Wales and Pakington Strand in Geelong West, Victoria.

Director of property Ralph Kemmler said yesterday that Woolworths had a history of developing shopping centres, as shown during the global financial crisis, but was typically not a long-term holder of property assets.

"We now see an opportunity to place a portfolio of quality completed retail sites for tender, on the basis of sale and long-term leaseback transaction," he said. "However, there is no urgency to dispose of the portfolio and we will happily continue to hold the properties on balance sheet should market conditions dictate."

Woolworths, which has a significant holding in New Zealand, has appointed investment bank Moelis & Company and commercial property group CB Richard Ellis to assist in the transaction, which is due to start in a few weeks.

- AAP