Shopping centres operator Federation Centres has appointed former Novion chief executive Angus McNaughton as CEO following the companies' merger.

Mr McNaughton replaces Steven Sewell, who steps down as a director after overseeing the creation of an $11 billion company.

Federation offloaded three properties in Tasmania for $85 million in June and Mr McNaughton says he will continue to “create a stable, sustainable portfolio that delivers strong returns for our securityholders”.