Region Group chief executive Anthony Mellowes says he does not expect further material writedowns to its $4.4 billion portfolio of supermarket-anchored smaller malls, but flagged around $130 million of divestments to shore up its balance sheet.

Region, previously called SCA Property Group, wrote down the value of its portfolio of 82 neighbourhood centres and 13 sub-regional malls by 4.4 per cent or $264 million over the 2023 financial year after capitalisation rates – similar to investment yields – expanded by 42 basis points to 5.85 per cent on the back of higher interest rates.