The group’s Australian and New Zealand businesses will be merged with Westfield Retail Trust (WRT) as part of the project and will form a new company.
The new $26bn entity will be named Scentre, and will be listed on the Australian stock market. Westfield Group will be renamed as Westfield Corporation and will comprise $17.6bn in assets.
Both the entities will have Frank Lowy as chairman and will comprise separate boards and management.
The Scentre Group will have interests in 47 shopping centres in Australia and New Zealand whereas Westfield Corp will include interests in 44 centres across US, UK and Europe. This includes Westfield London and Stratford City in London and Westfield World Trade Center in New York.
Westfield chairman Frank Lowy said, "Westfield’s international business and its Australian/NZ business have both grown in scale and quality to the stage where they can now stand on their own".
The revamp is expected to provide 5.2% accretion to WRT’s Funds from Operations (FFO) per security and 2.9% accretion per security for WDC for 2014.
The project will allow WRT security holders to receive A$285 and 918 securities in the new Scentre Group for every 1,000 WRT securities held. Westfield holders will get 1,000 securities in the new Westfield Corp and 1,246 securities in Scentre Group for every 1,000 WDC securities held.
The deal is due to receive the security holder approval in May 2014.