Sydney, May 4, 2026, 05:02 AEST
Scentre Group is moving toward settlement of a US$1.31 billion debt buyback after investors tendered about 89% of its non-call 2030 subordinated notes, giving the Westfield owner a path to redeem what remains. The next step is a May 4 New York deadline for guaranteed-delivery notes, followed by scheduled settlement on May 5.
The result matters now because it clears a large capital-management item before Australian trading resumes on Monday morning. Scentre said the tendered US$1.17 billion of notes would allow it to redeem the balance at par, meaning face value, and leave the group with about A$3.2 billion of liquidity after full redemption.
Scentre shares last closed at A$3.77 on Friday, up 1.62%, with the Australian Securities Exchange still hours from its normal Sydney-time open. ASX says normal trading begins around 09:59:45 Sydney time and runs to 16:00.
The tender offer — an offer to buy back debt from bondholders — priced at US$1,009.09 for each US$1,000 principal amount accepted, plus accrued interest. The notes are subordinated, meaning they rank below senior debt if a borrower is wound up, and they were originally due in 2080.
The balance-sheet move comes after a stronger operating update from Scentre’s 42 Westfield destinations in Australia and New Zealand. Chief Executive Elliott Rusanow said visitation from the start of the year to April 19 reached 160 million, up 3.1%, or 4.9 million visits, from the same period in 2025; first-quarter partner sales rose 5.0% to A$7.0 billion and portfolio occupancy was 99.8% at March 31.
Scentre also kept its 2026 targets in place: funds from operations, a property-sector earnings measure that strips out some valuation movements, of at least 23.73 cents per security, and distributions of 18.43 cents per security. The company is also pressing ahead with a A$240 million redevelopment at Westfield Bondi.
The move sits in a busy market for prime Australian retail property. Dexus said in December that a managed fund would buy a further 25% of Westfield Chermside for A$683 million, lifting Dexus-platform exposure to 50%, while listed peer Vicinity Centres reported 99.6% occupancy and said FY26 FFO and adjusted FFO per security were expected near the top end of guidance.
Morningstar analyst Yingqi Tan wrote in December that the Dexus-Scentre partnership was “a sensible strategy for both,” saying it released capital for Scentre as the group redeploys funds into redevelopment and potential apartments around Westfield malls. Morningstar kept its fair value estimate for Scentre at A$3.90 at the time. Morningstar
There are still moving parts. Acceptance of guaranteed-delivery notes depends on holders meeting the May 4 New York deadline and the offer conditions, and Scentre has also warned that geopolitical volatility could hit the broader economy and consumers. That is the risk around a retail landlord even when leasing and visitation are strong.
For now, the company has narrowed the question to execution. If settlement proceeds as scheduled, Scentre has said it intends to exercise its redemption right as soon as practicable after the tender offer is completed.
