Dexus Wholesale Shopping Centre Fund (DWSF), managed by Dexus (ASX:DXS) → Westfield Chermside (25% interest)
announcedDexus Wholesale Shopping Centre Fund (DWSF), the flagship retail fund managed by Dexus, agreed to acquire a 25% interest in Westfield Chermside in Brisbane from Scentre Group for $683 million, taking Dexus's total holding in the centre to 50%. The price represented Scentre Group's book value for the asset at 30 June 2025 and a valuation capitalisation rate of 5.00%, implying a total centre value of more than $2.7 billion. Scentre Group remains the property, leasing and development manager of the joint venture and invested further capital into the new Dexus-managed fund as a foundation investor.
Dexus said the deal leveraged its established relationship with Scentre Group to secure a "market-leading asset," with Westfield Chermside's scale (486 retailers, 17.6 million annual visits, $1.35 billion MAT in 2024) and growth potential used to launch a new wholesale fund series aimed at institutional capital seeking exposure to premium retail property.
Scentre Group said the sale was part of its ongoing capital management strategy, freeing up capital to redeploy into redevelopment, mixed-use and residential opportunities around its Westfield portfolio while retaining management control and a 50% economic interest in the centre.
Neither Dexus (ASX:DXS) nor Scentre Group (ASX:SCG) reported a material single-day share price move directly attributable to the announcement; Morningstar characterised the transaction as "a sensible strategy for both" parties rather than a market-moving event for either stock.
Coverage framed the deal as consistent with Scentre Group's long-running strategy of partial asset sell-downs to fund development capex while retaining management fees, and as the cornerstone investment for a new Dexus wholesale fund series targeting institutional retail property capital.
Deal mechanics
Sale of a 25% interest in Westfield Chermside by Scentre Group into DWSF, a Dexus-managed unlisted wholesale fund. Dexus committed an additional $170 million of equity into DWSF (taking its own investment in the fund to $300 million), with Scentre Group also investing as a foundation investor in the restructured joint venture.
Not indicated as requiring specific regulatory clearance beyond standard conditions.
Comparable deals in Real Estate
Learn more
- Scentre Group sells 25% stake in Brisbane Westfield to Dexus fund for $683m — Capital Brief
- Dexus joins Scentre Group in $683m joint venture at Westfield Chermside - Shopping Centre News
- Dexus buys 25pc stake in Westfield Chermside for $683m - Business News Australia
- New fund series launched with Westfield Chermside investment - Dexus
- Our view of Dexus / Scentre deal - Morningstar