Australia's largest supermarket chain Woolworths Ltd (ASX:WOW) plans to offload $900 million of its retail sites from its property portfolio.

The retail giant said it was constantly reviewing opportunities for disposing property assets as market conditions in the retail sector improve. It intends to sell 30-plus neighbourhood and sub-regional shopping centres, and then lease back the sites on a long-term basis.

Ashgrove Marketplace in Queensland, Carnes Hill Marketplace in New South Wales and Pakington Strand in Geelong West, Victoria are some of the properties within the portfolio.

Woolworths had a history of developing shopping centres, as displayed through the global financial crisis, but was typically not a long-term holder of property assets, according to director of property Ralph Kemmler.

"We are continually reviewing opportunities for the disposal of property assets and amid improving market conditions in the retail sector, we now see an opportunity to place a portfolio of quality completed retail sites for tender, on the basis of sale and long term leaseback transaction,'' he said.

"However, there is no urgency to dispose of the portfolio and we will happily continue to hold the properties on balance sheet should market conditions dictate this course of action.''

Investment bank Moelis & Company and commercial property group CB Richard Ellis have been selected to assist in the transaction slated to commence in a few weeks.