pump and dump, big boy's game again, page-28

Speeding ticket for CentroJAMIE FREED
September 22, 2009
Insider, Jamie Freed's new column, looks at what's happening in boardrooms, back rooms and the world of business. Click back here for the latest updates.


A year ago Centro Properties’ directors were pleading with investors and bankers to help keep the retail landlord afloat, today it is being issued with a speeding ticket by the ASX for a jump in the share price.

In response to the query issued early today, Centro Properties’s company secretary said the trust knew of no reason as to why its price has jumped from 17 cents on Friday to 20 cents this morning, on solid turnover.

Analysts were also unsure about the price rise, saying corporate activity was unlikely given Centro’s debt and the flat outlook for its US retail operations.

But they said there has been a re-rating of the Australian retail property sector thanks to the improvement in the economy.

Another positive for the overall sector was the deal by the overnment Future Fund to buy a third share in the UK-based Bullring shopping centre for £210 million ($394 million).

Retail investors are now watching the Future Fund very carefully as it's emerged the contender to buy the $450 million-plus Joondalup shopping centre in Western Australai from ING’s wholesale fund.

In late September 2008, Centro Properties was struggling for air at 4.2 cents, after having just succeeded in securing a deal with its bankers to extend the repayment of its mountain of $4.5 billion debt.

Despite reporting a $3.5 billion loss for the year to June 30, 2008, the chief executive Glenn Rufrano, said he was confident the next six months should be strionger, particularly in Australia.

He said assets sales that the group had flagged a year ago to help repay the debt, were now not as desperate to make at fire sales prices. Centro has said it would sell its Australian portfolio, with emphasis on the half shares its holds with its Centro Retail Trust, but as yet has not made any sales.