Australian shopping centre giant, Westfield, is selling seven US malls for $US1.64 billion ($A1.76 billion).

Private equity company, Starwood Capital Group, will own and manage the assets in Ohio, Washington State, California, and Indiana, as Westfield maintains a 10 per cent equity interest.

The transaction value is $US120 million ($A128.78 million) below the book value of the assets at the end of December 2012, and in line with book values as of June 30.

Westfield Group co-CEO, Peter Lowy, said the transaction would generate shareholder value.

“We are focused on redeploying our capital into superior retail destinations in major cities through divesting non-core assets and introducing joint venture partners into our high quality portfolio of assets,” he said in a statement.

Once the transactions are completed in the December quarter, Westfield, the world’s largest shopping centre group, will own and operate 40 US shopping malls.

Westfield Group shares rose eight cents to $10.92 at 1037 AEST.

AAP