Property and retail giant Scentre Group is weighing the sale of a 25% stake in Brisbane’s Westfield Chermside, a move that could generate around $700 million as investor interest in premium shopping assets continues to climb.

The potential buyer is Dexus, which earlier this year snapped up an initial quarter share of the massive northern Brisbane retail complex in a $683 million deal.

That transaction valued the entire asset at more than $2.7 billion, making it Australia’s second-largest regional shopping centre.

Industry sources say the latest deal could come at a higher price, reflecting the strengthening retail market, strong leasing activity and a rebound in consumer spending.

The previous sale was struck at book value with a capitalisation rate of about 5%.

Scentre, which owns and operates Westfield centres across Australia and New Zealand, continues to attract strong investor interest in its flagship properties.

For Dexus, the acquisition would mark another strategic play in the retail sector after its investors pulled back from a planned purchase of Melbourne’s Woodgrove Shopping Centre last year.

The company has since been redeploying capital from its $830 million sale of a half stake in Sydney’s Macquarie Centre and is eyeing more shopping-centre investments.

Westfield Chermside, which first opened in 1957, now hosts major retailers including David Jones, Myer, Apple, Coles, Woolworths and Sephora, alongside more than 470 specialty stores, cinemas and a leisure and dining precinct.

In the past year, it drew 17.6 million visitors and generated $1.35 billion in retail sales.