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Stockland sells out of NZ retail centres24/12/2007 09:27AM AEST The nation's third largest shopping centre owner, Stockland Ltd, has sold its 50 per cent stake in three New Zealand shopping centres to AMP New Zealand for $322 million.

In a statement to the market, Stockland said the money would be redeployed to investment opportunities in Australia and the UK.

"Selling our stake in these centres ensures we can continue to focus on using our management, leasing and development expertise to add value to our Australian portfolio, which has a book value approaching $4 billion and an $1.8 billion development pipeline," Stockland chief executive John Schroeder said.

"Demand for retail assets and the resulting cap rate compression meant that it was timely for us to pursue the sale of our interest in these centres and capitalise on other value-adding opportunities in the market to deliver improved future returns," he said.

Stockland owned the Auckland shopping centres in partnership with AMP New Zealand Property, after purchasing the stake 2003.

Stockland said the sale represented a "total blended yield of 5.9 per cent and has delivered a strong premium to book value."

The sale must be approved by the New Zealand Overseas Investment Office.