BANKERS to the troubled Centro Properties Group are to confirm today that they have thrown the retail landlord a five-month lifeline to allow it to repay its debt and align its repayments with its international creditors.
Centro has until the close of business today to repay $4.9 billion, including interest. But there is a further $2.5 billion expiring before the end of the year, taking its total 2008 debt exposure to $7.4 billion.
Centro's securities yesterday closed up 2¢ to 47.5¢ amid speculation it is in negotiations with two private groups for the sale of three of the 28 centres housed in its wholesale fund.
Centro spokesman Mitchell Brown confirmed on Monday that individual assets were on the block as part of the group's refinancing program.
Melbourne-based Salta Properties, which jointly owns Centro Victoria Gardens in Richmond, is looking at exercising its first right of refusal over Centro's half-share, which is valued at about $91 million.
Leda Holdings co-owns the other two assets, Centro Tuggeranong Hyperdome and Centro Hervey Bay, worth a combined $254 million.
It is expected Leda will also exercise its pre-emptive clause and could sell the Centro stake to another party.
CNP Price at posting:
0.0¢ Sentiment: None Disclosure: Held
