** Analysts at Jefferies raise price target for Australia's Scentre Group SCG.AX to A$4.24 from A$4.21; maintain "hold" rating

** Retail property manager said on Friday new fund managed by commercial real estate firm Dexus DXS.AX to buy a 25% interest in Westfield Chermside shopping centre in Brisbane for A$683 million ($453.65 million), after another Dexus fund acquired a 25% stake in July

** Brokerage says, for Scentre, deal frees up capital to potentially redeem notes, reduces gearing to about 30%, while maintaining economics of the asset

** Adds, for Dexus, capital raising momentum appears to be improving, but sentiment remains pressured by APAC uncertainty; reiterates "underperform" rating

** Morningstar expects FFO to rise 4% for Scentre

** Expects Dexus funds management to continue to grow, citing recent capital inflows, as asset valuations stabilize

($1 = 1.5056 Australian dollars)

(Reporting by Keshav Singh Chundawat in Bengaluru; Editing by Paul Simao)

((Keshav.singhchundawat@thomsonreuters.com))