"CBL & Associates Properties is exploring a transaction with an Australia-based real estate company that would involve the company's existing community center portfolio," the Chattanooga, TN-based retail real estate developer and manager said in a prepared statement. "This contemplated transaction would not involve any of the company's regional malls and associated centers nor affect its development programs. The company will issue further announcements as it believes are warranted."

Earlier in the day, at least one news agency--Dow Jones--reported that CBL and Australia-based Galileo Funds Management have retained Merrill Lynch to raise up to A$500 million to form a property trust that would be listed on the Australian Stock Exchange. If the information is true, it appears the REIT would be stoked, at least in part, with CBL's community center portfolio.

In its March annual report, CBL reported owning a controlling interest in 61 community centers with a combined leasable area of 5.1 million sf and an average occupancy of 94.7%.