Woolworths is to form a separate company that will hold its retail properties.
The supermarket group will place the 69 shopping centres it currently owns into a real estate investment trust, which will be listed on the ASX before the end of November if the change is approved by shareholders.
The shopping centres have been valued at just over $A1.4 billion.
Existing Woolworths shareholders will get one unit in Shopping Centres Australasia (SCA) Property Group, for every five Woolworths shares they own.
SCA will also undertake a public offer of 337.3 million units to raise between $A425 - $A506 million, which will be used to partially fund the acquisition of the property portfolio.
Woolworths chief executive Grant O'Brien says the creation of SCA would free up capital for other expansion options.
The ABC reports two senior Woolworths executives will be the chief executive and chief financial officer of the new company.
