Property developer Stockland Group has expanded its on-market buyback of its securities to up to 10 per cent of issued capital.

The previous target for the buyback, announced in August 2011, was five per cent.

Stockland on Wednesday said the extension would be funded via its ongoing program of asset sales.

Stockland also announced it had agreed to sell its 55 per cent stake in the Moorebank Industrial Property Trust (MIPT) for $123 million – about $10 million below book value.

Stockland managing director Matthew Quinn said the group was committed to growing its returns by selling lower-yielding assets to invest in its own securities and to fund future growth.

So far, Stockland has bought back 113.2 million securities, amounting to 4.75 per cent of its issued capital, at an average price of $3.02 per security.

Stockland said it had agreed to sell the MIPT stake to Qube Logistics, one of the MIPT joint-venture partners.

An 83-hectare property at Moorebank is the site of a proposed intermodal terminal and port-linked industrial facility.

Stockland’s head of commercial property, John Schroder, said the proposed Moorebank intermodal terminal remained a key NSW infrastructure project but was not aligned with Stockland’s strategy to reweight its commercial property portfolio from office and industrial assets to higher-returning retail assets.

Mr Shroder said asset sales so far in the 2012 financial year totalled $918 million.

Units in Stockland closed nine cents higher at $3.16 while shares in Qube dipped half a cent to $1.71.