Westfield’s shopping centres owner Scentre Group has sold Singapore’s sovereign wealth fund GIC a 49 per cent stake in five New Zealand centres worth a total $NZ2.1 billion ($A1.96 billion).

Under the deal, GIC will pay $NZ1 billion to take an interest in four malls in Auckland and one in Christchurch.

“The transaction represents approximately a four per cent premium to the book value of these shopping centres at June 30, 2014 and an effective implied cap rate of 6.8 per cent,” Scentre said in a statement to the ASX.

Following the transaction, Scentre Group will own a 51 per cent interest in each of the centres and will continue to provide property management, development, design, and construction services.

Scentre CEO, Peter Allen, said the move reflected the group’s focus of introducing joint venture partners into some of its wholly-owned assets with the proceeds being redeployed to develop projects and repay debt.

The transaction remains subject to GIC obtaining approval from the Overseas Investment Office, New Zealand, but Scentre hopes to complete the deal by the end of 2014.

Scentre operates Westfield’s shopping centres in Australia and New Zealand.

AAP