Westfield Group (ASX:WDC) has confirmed that it will restructure to create a new entity called Westfield Retail Trust, distributing $7.3 billion to its security holders.
The separately listed property trust will be launched through a distribution of units in the new trust to Westfield Group security holders.
Westfield Retail Trust will then become a joint venture partner in 54 of the group's shopping centres in Australia and New Zealand.
Chairman Frank Lowey says the new trust responds to the market demand for a domestic trust focussed on investing in high quality retail real estate with conservative gearing and income mainly in Australian dollars.
Westfield Retail Trust will undertake a $3.5 billion offering of new units to eligible investors of which $1.75 billion has been underwritten.
Westfield says the restructure will result in a $4.4 billion reduction in its net debt as well as the potential to boost earnings and return on equity from income earned with its new joint venture partner.
In the first half of this year, Westfield Group booked a $965.8 million profit.
WDC Price at posting:
$9.99 Sentiment: None Disclosure: Held
