Woolworths sells eight centres for $266m
Woolworths sells eight centres for $266m

Woolworths has sold eight of its retail shopping centre as the supermarket giant continues to divest its property interests.

The sale is expected to bring Woolworths total capital disposal of retail property for the 2011 financial year to about $380 million.

Australia's biggest supermarket player said contracts for eight of its neighbourhood and sub-regional retail shopping centres had been exchanged.

The purchaser is a 50/50 joint venture owned by Charter Hall Retail REIT and Telstra Super, which paid $266 million for the eight properties at an initial yield of 7.94 per cent.

"This continues Woolworths strategy of divesting property it develops as appropriate market opportunities arise," Woolworths said in a statement.

Woolworths director of property Ralph Kemmler said the company received very strong interest in its portfolio sale process, including several offers to acquire the total parcel.

"However, our original objective was to pursue the most appropriate and overall financially favourable solution and today's agreement achieves this aim," he said.

"The decision also reflects the fact that as the market continues to recover, completed assets with a trading history are more favoured."

The sale came after Woolworths announced in September last year that it was looking to sell a portfolio of property assets totalling $900 million.

The West Australian

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