Westfield terminates Innaloo deal

Westfield Group has terminated an agreement that would have allowed it to sell the Innaloo Shopping Centre for $255 million to Charter Hall Group.

Charter Hall told the market today that Westfield had terminated the put option agreement, which was announced in September.

The put option was understood to have been entered into to help Westfield win ACCC approval for an earlier plan to acquire full control of the nearby Karrinyup Shopping Centre.

However, Westfield sold its one-third stake in the Karrinyup centre to co-owner Uni Super for $246.7 million in September, giving the superannuation fund full ownership of the centre.

Westfield's other WA assets include Carousel Shopping Centre and Westfield Whitford City.

If the Innaloo deal proceeded, Charter Hall had planned to retain a 15 per cent direct stake in the Innaloo property, with the balance held by a global institutional partner.

Charter Hall said transaction costs on the Innaloo deal had been recovered through the payment of a put option fee by Westfield.