Our view on Woolworths’ new property trust

Co-founder of the Switzer Report
Print This Post A A A

Woolworths shareholders are about to become unitholders in a new property trust – Shopping Centres Australasia Property (or SCA Property Group) – under a plan to spin-off and sell shares in its properties. Under the plan, shareholders will receive one unit in SCA for every five Woolworths (WOW) shares they own (that is, if you own 1,000 Woolworths shares, you will receive 200 units in the SCA Property Group).

SCA Property Group is being created via the transfer of 69 neighbourhood, sub-regional and freestanding shopping centres from Woolworths, with shareholders receiving an ‘in-specie’ distribution of units in the new listed property group. The proposal is subject to shareholder approval at the Woolworths annual general meeting (AGM) on 22 November.

SCA is separately seeking to raise around $425 million via an offer to the market and Woolworths shareholders.

Also from this edition