Australand Property Group has established a $1.3 billion unsecured syndicated bank debt facility as the real estate investment trust aims to diversify and increase flexibility in its funding.

The new facility replaces the existing $1.15 billion secured facility, Sydney-based Australand said in a statement.

"We are pleased to have achieved this first step in moving to a totally unsecured borrowing platform," chief financial officer Kieran Pryke said in the statement.

Mr Pryke said the trust was aiming to free about $2.4 billion worth of assets from being tied to loans, improve its liquidity position, extend the debt maturity profile, lowering the average cost of debt and the administration costs.

The new facility comprised three tranches, including $325 million expiring in June 2012, $650 million expiring in June 2013 and $325 million expiring in June 2014.

That reduced the concentration of debt expiring in any one year and extended Australand's maturity profile to 2.6 years.