CFS Retail to sell 4 properties, sets guidance

The sale depends on whether Pacific Retail can successfully list on the Australian Stock Exchange.

CFS Retail Property Trust Group (CFX) has entered into a conditional agreement to sell four properties worth $446.5 million to Pacific Retail and set its guidance for 2013-14.

The contract to sell the properties depends on whether Pacific Retail, which is a newly formed fund seeking to list on the Australian Securities Exchange, can successfully raise enough capital via an initial public offering (IPO).

If the sale is successful CFS's distribution guidance for 2013-14 is between 13 and 13.1 cents per stapled security, but if not it will be higher at between 13.7 and 13.8 cents.

This is because the proceeds from the sale will be used to clear some debt, allowing CFS to invest further in property developments or acquisitions.

CFS expects the transaction to be completed by the start of September this year given Pacific Retail's successful capital raising.

The four shopping centres to be sold are Altona Gate, Brimbank, Corio and Rosebud Plaza.