A 25 per cent stake in Westfield Chermside has been acquired by Dexus for $683 million, marking a major property investment in one of Brisbane’s key retail centres.
Background and Context
On 23 July 2025, Dexus confirmed the acquisition of a quarter interest in Westfield Chermside through its Dexus Wholesale Shopping Centre Fund. The purchase was made from Scentre Group, valuing the entire property at over $2.7 billion. Westfield Chermside, located 20 minutes north of Brisbane’s CBD, originally opened in 1957 as the Chermside Drive-In Shopping Centre. It was Australia’s first retail development of its kind and has since evolved into the country’s largest single-level shopping centre.
Transaction Details and Asset Profile
The $683 million acquisition was an off-market transaction reflecting Scentre Group’s book value as of 30 June 2025, with a capitalisation rate of 5 per cent. Westfield Chermside generated $1.35 billion in retail sales and recorded 17.6 million customer visits in the past calendar year. The centre includes major anchor tenants such as Myer, David Jones, Coles, Woolworths, Kmart, Target, Apple, and an Event Cinemas complex, supported by approximately 476 specialty stores and a leisure and dining precinct.
Capital Strategy and Investment Direction
Scentre Group retains a 75 per cent interest in the asset and will continue to manage property, leasing, and development operations under the new ownership structure. The company has adopted joint ventures as a strategic method to secure capital for redevelopment plans, including housing projects around existing retail assets. Instead of diluting equity through public raisings during market downturns, it has relied on divestments and funding partnerships. Proceeds from the Chermside transaction will support these long-term objectives.
Dexus Investment and Fund Repositioning
Dexus, having recently exited a separate stake in Sydney’s Macquarie Centre, directed funds from that sale into this Brisbane deal. The company also increased its commitment to the Dexus Wholesale Shopping Centre Fund by $170 million, bringing its total investment in the fund to $300 million. The Chermside acquisition is positioned as a strategic win for the fund, following earlier legal and operational setbacks.
Ongoing Collaboration Between Companies
This transaction continues a history of collaboration between Dexus and Scentre Group. Previous joint ventures include residential approvals in Perth and the exchange of retail assets in Adelaide, such as Westfield Tea Tree Plaza and Westfield West Lakes.
Looking Ahead
The Westfield Chermside joint venture strengthens Dexus’s retail portfolio and advances Scentre Group’s capital management plans without altering control of day-to-day operations. Both parties intend to pursue further strategic collaborations while maintaining their respective roles in asset performance and redevelopment.
Published 30-July-2025
