Woolworths has announced plans to create a REIT that will take over ownership of Woolworths-owned retail property in Australia and New Zealand.
Woolworths will transfer ownership of 69 Woolworths-anchored neighbourhood, sub-regional and freestanding centres valued at $1.4 million or more, to the REIT, to be named the Shopping Centre Australasia Property Group (SCA).
SCA will be created from an in-specie distribution to Woolworths shareholders, and related offer to investors. On November 30, 2012 Woolworths shareholders will receive one stapled unit in SCA for every five Woolworths shares they hold.
Following completion of the distribution and offer, Woolworths will have no ownership interest in SCA.
Philip Clark will be the fund's chairman. Anthony Mellows, currently Woolworths head of asset management and group property operations, will act as interim CEO. Kerry Shambly, currently Woolworths Capital Transactions Group manager, will be CFO.
A resolution to approve the distribution via a capital reduction will be put to Woolworths shareholders at the Annual General Meeting on November 22, 2012.
