Scentre Group is preparing to significantly expand beyond retail, outlining plans to build more than 16,000 apartments across several of its Westfield shopping centre sites. The move positions the company as a growing force in residential development, using its extensive property portfolio in prime urban locations.

The group already holds approval for around 4,100 homes at Westfield Hornsby in Sydney and Westfield Belconnen in Canberra. It is now seeking further approvals for additional projects at six more locations, including centres in Brisbane, Sydney, Canberra and Melbourne.

Chief executive Elliott Rusanow said the company is looking to unlock greater value from its land holdings, which span about 670 hectares. He indicated that these sites could support a wide range of uses beyond shopping, including housing, student accommodation, health services and education facilities.

A large portion of Scentre’s portfolio consists of shopping centres, surrounding land and extensive car parking areas. While only about 40 per cent to 50 per cent of this land is currently developed, the remaining space, particularly car parks, offers opportunities for future construction. Rusanow suggested that these areas could evolve into mixed-use developments where parking remains but is complemented by new buildings above.

Westfield Hornsby Sydney

The strategy could be applied across most of the company’s 42 properties, with Westfield Sydney being a notable exception. To deliver these projects, Scentre plans to partner with external investors, including superannuation funds and residential developers. According to Rusanow, there is strong interest from investors seeking exposure to housing and mixed-use developments.

Financially, the group reported solid performance for 2025. Funds from operations rose by 4.9 per cent to nearly $1.2 billion, while statutory profit increased sharply to about $1.8 billion following gains across its property portfolio. Retail activity also remained strong, with total sales reaching a record $30 billion, up by $1 billion compared with the previous year.

The company is also investing in upgrades to existing centres. One example is a planned $240 million redevelopment at Westfield Bondi, which will transform an upper level into a destination focused on dining, entertainment and lifestyle offerings.

Leasing activity has remained active, with more than 3,000 deals completed during the year and rental growth continuing. At the same time, Scentre has been bringing in investment partners to free up capital for future projects. In 2025, it secured about $2.2 billion through joint ventures, including a major deal involving Westfield Chermside and another partnership linked to Westfield Sydney.

Looking ahead, the company expects earnings and distributions to continue growing in 2026, although forecasts came in slightly below market expectations. Analysts noted that while selling stakes in assets can reduce earnings in the short term, reinvesting that capital into new developments could strengthen growth over time.

Scentre’s shift towards residential development reflects a broader trend in the property sector, where large retail owners are rethinking how their land can be used to support housing and other urban needs.