asset sales, page-5

Worked fine for me


By TIM LANDIS
STATE JOURNAL-REGISTER
Posted Aug 27, 2008 @ 01:39 PM
Last update Aug 27, 2008 @ 08:36 PM

The Australian owner of three of Springfield’s largest shopping centers has begun selling off its U.S. properties as the company tries to meet a Sept. 30 deadline for the first payment toward a debt-restructuring plan.

A spokeswoman at the New York office of Centro Properties Group confirmed Wednesday that an agreement has been reached for the sale of 29 U.S. malls and shopping centers, but she said specific locations will not be announced until the sale is completed “sometime this fall.”

Centro has owned Fairhills Mall, Sangamon Center North and the section of stores between Wal-Mart and Target in Parkway Pointe since 2006. Centro owns or manages 700 properties in the United States, according to the company Web site.

Centro filings with the Australian equivalent of the U.S. Securities and Exchange Commission showed the latest sales agreement will raise about $714 million. Centro also has extensive holdings in Australia and New Zealand.

A series of announcements from Centro indicates the company is doubtful it can raise $2.3 billion by Sept. 30 toward the restructuring of $5.7 billion (U.S.) in debts. Bankers have agreed to roll over the remaining debt to Dec. 15 if the payment is made.

The company was hit hard by last year’s subprime mortgage collapse, and Centro posted a statement on the company Web site this week cautioning, “No assurance can be given that further debt extensions will be achieved.” An earlier statement also said the sale of additional U.S. properties is likely.

Dean Carver, owner of Imagination Plus and Dean Carver Salon, has been through a series of ownership changes during 30 years at Fairhills Mall. He said Centro renovated the exterior of the center last year, but he has heard little from the company of late.

“We haven’t heard anything other than the fact that we are up for sale, but that’s all they really tell us,” he said. “We have a property manager in the mall, a leasing agent in Peoria and an owner in Australia.”

Pease’s Candy Shops of Springfield has been in Parkway Pointe for 15 years and Sangamon Center North for 16. Co-owner Rob Flesher said he also has heard little from Centro other than the occasional letter.

“A couple of months ago … they did send out a letter that everything was OK, the U.S. properties were doing fine, but you take that with a grain of salt,” Flesher said.

Pease’s has two other Springfield stores and a local manufacturing plant.

Word of the possible sale has spread through the local real estate community, said Roger Garrison with the Garrison Group of Springfield.

“My contact with Centro indicates these were not (among the 29 sold) and that they all three have been good properties for them,” Garrison said.

Tim Landis can be reached at 788-1536.