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Disaster
=DJ UPDATE: MFS Has Made Approaches To Centro To Host Syndicates

(Adds further MFS comment, adds share price.)

By Andrew Harrison
Of DOW JONES NEWSWIRES

MELBOURNE (Dow Jones)--Australian fund manager MFS Ltd. (MFS.AU) said Friday said it
has made a friendly proposal to Centro Properties Group (CNP.AU), the nation's
second-largest owner of shopping malls, to manage some of Centro's property trusts.
The Brisbane-based company made the comment in response to an Australian Financial
Review report published Friday that said MFS had approached Centro.
MFS said in a statement the company has offered to become the "independent
Responsible Entity" for about 35 unlisted closed-end Centro property trust or
syndicates.
Melbourne-based Centro is struggling to refinance A$3.9 billion of maturing debt before
a Feb. 15 deadline from bankers and might sell assets to meet its debt commitments.
"MFS has on a number of occasions previously taken such an appointment as a new
Responsible Entity in similar circumstances," the Brisbane company said.
"The proposal only relates to a potential role as an independent Responsible
Entity and does not relate to any real estate acquisitions from the Centro group,"
MFS said.
MFS declined to comment further on the proposal.
Centro stock has fallen 85% since Dec. 17 when it told the market about its situation.
Earlier this month, Centro said it had received unsolicited expressions of interest
from parties wanting to invest or buy certain assets and was investigating these options
as part of a strategic review of its structure.
MFS also said its Stella Group hotel and travel unit had earnings before interest, tax,
depreciation and amortization of more than A$22 million in December.
The December result helped Stella, which operates accommodation brands including
Peppers, Mantra, Ambia and BreakFree and provides travel services, achieve first-half
pretax earnings of more than A$103 million, which was ahead of its expectations, it said.

The company's funds management business has A$150 million of debt maturing in the
six months ending June 30 and the company plans to pay or refinance this debt before its
due date, it said.
"Given the opportunities provided by current Australian market conditions MFS is
presently pursuing a range of opportunities in Australia to significantly grow its funds
management business," MFS said.
Shares in MFS last traded Thursday at A$3.94, while Centro stock was last exchanged at
86 cents.

-By Andrew Harrison, Dow Jones Newswires; 61-3-9671-4323; [email protected]

(END) Dow Jones Newswires
January 10, 2008 17:12 ET (22:12 GMT)
Copyright (c) 2008 Dow Jones & Company, Inc.

Friday 11 January 2008 09:12:12:720 AEST

News Story: CNP; MFS - =DJ UPDATE: MFS Has Made Approaches To Centro To Host Syndicates