“Following an extensive review of our portfolio, it is clear that we need to focus our resources on creating destinations that provide market-leading shopping, dining and entertainment experiences,” Mr Kelley said.

“Since the merger in 2015, we have sold $1.9 billion of assets at a 2.1 per cent premium to book value. These proceeds were used to reduce debt and then reinvested over time into substantially higher returning asset acquisitions and developments, creating significant security-holder value and improving portfolio specialty sales productivity by 22 per cent to $10,243 per square metre,” he said.

Vicinity has already begun the process of reinvesting capital into its major malls, upgrading The Glen and Box Hill Central in Melbourne, Galleria in Perth, and Chatswood Chase and Bankstown Central in Sydney.

Vicinity has not specified what centres it will offer to the market but it has numerous neighbourhood centres like Carlingford Court in Sydney and Corio Central near Geelong.

Vicinity has appointed JLL as its real estate adviser and co-ordinator of the asset sales process, working with Macquarie Capital as its corporate adviser.

“There are other assets in the portfolio to which the market is not ascribing, in our view, full value. We are working through options as to how to deal with these, with a further update anticipated at our annual results briefing in August,” Mr Kelley said.

The expected impact of $1 billion of asset sales would dilute funds from operations per security by about 1 cent on an annualised basis, before the reinvestment, he said.