Perron and Scentre have a longstanding joint-venture relationship.
The privately-held Perron business, which mainly invests in property and has a vehicle distribution network, has previously snapped up a half share of the Westfield Woden in Canberra, Westfield Airport West in Melbourne and Westfield Geelong.
The sale of Westfield Burwood comes as Scentre gained planning approval for a $500 million revamp of its Westfield Doncaster mall in Victoria.
The upgrade will include a large 14 storey office above a two-level retail podium on the north-west corner of the Doncaster site.
The new building will add 43,000 square metres of retail and 18,000 sq m of commercial office space and include an expanded bus interchange, improved car and pedestrian access and additional parking.
State planning minister Richard Wynne ticked off on the Doncaster development’s masterplan, but Scentre still needs planning permission from the local Manningham Council.
E-commerce threats and weak retailing conditions are weighing on Australia’s retail REITs as the stock market factors in potential asset valuation declines.
Another key test of how investors view their exposure to the changing retail environment will be Scentre’s Westfield Marion complex in Adelaide.
Scentre’s joint-venture partner in the mall, property giant Lendlease, is offloading its 50 per cent share with an asking price about $737.5 million.
Mr Allen said Scentre would continue to manage the Westfield Burwood mall and will use the funds from the sale to repay debt.
The deal was expected to be dilutive to funds from operations by about 0.2 cents per security. Scentre’s forecast distribution for 2019 remains unchanged at 22.6 cents per security.
Property Editor at The Age and BusinessDay journalist for Fairfax’s theage.com.au, smh.com.au, watoday.com.au and brisbanetimes.com.au.