Shopping centre group Vicinity Centres will add substantial residential components to some of its high-profile centres — including the Galleria in Morley — with its redevelopment program to be funded by another $1 billion sale of sub-regional and neighbourhood shopping centres.

Vicinity Centres chief investment officer Michael O’Brien said the sale, adding to the $1.9billion already realised, was a continuation of the group’s strategy of investing in market leading shopping, dining and entertainment precincts, particularly bigger assets with redevelopment potential.

WA shopping centres potentially on the to-be-sold list could include Dianella Plaza, Currambine Central, Ellenbrook Central and the Flinders Square neighbourhood centre in Yokine.

However, Mr O’Brien declined to name the WA centres earmarked for sale.

“These are good assets,” he said. “It will be a public campaign. We know there’s a strong market for these assets.”

The Galleria, which it owns with the privately owned Perron Group, was valued at $760 million in December.

The centre is to be the beneficiary of a $500 million redevelopment, was the site of a bus interchange and “in time” would offer a “significant mixed-use” opportunity including a residential component, adding to the “major retail expansion”, Mr O’Brien said.

At The Glen in Melbourne, also owned with Perron, the owners had sold rights to developer Golden Age for a 500-apartment project.

A residential component would not suit every asset, Mr O’Brien said, but Vicinity Centres’ Bankstown centre in NSW, which would benefit from a new rail line, had significant potential as did Box Hill Central, which straddles one of Melbourne’s busiest rail lines.

Vicinity Centres chief executive and managing director Grant Kelley said the group had appointed blue-chip agency JLL as its real estate adviser and co-ordinator of the asset sales, as well as Macquarie Capital as its corporate adviser.

Vicinity Centres was born out of a $22 billion merger between Federation Centres and Novion Property Group three years ago.

Vicinity owns direct factory outlets around the country, including the $150 million centre being built at Perth Airport.