Very good announcement. Nice to see they will be unlocking...

Very good announcement. Nice to see they will be unlocking capital in the bigger centres, including Galleria :-)

STRATEGIC REVIEW UPDATE
Centro Retail Australia (ASX: CRF) announces that it has completed the initial phase of its
strategic review following the establishment of the newly aggregated Australian shopping
centre group in December 2011.
With this first phase completed, the Board has confirmed that the over-arching objective of
the group is to be a leading ASX listed, vertically integrated, owner and manager of
Australian shopping centres with a substantial diversified portfolio.
Currently the group’s portfolio operating metrics compare favourably with industry
benchmarks - recording high occupancy, positive rental rate growth and net operating
income growth in recent years.
The existing portfolio’s shopping centres are mostly anchored by at least one national
supermarket and have a tenant mix with a skew towards food, services and nondiscretionary
retail offers – positioning the portfolio to capitalise on the pre-eminent
suburban and core community locations.
Potentially, opportunities for further income and capital value growth exist at many shopping
centres from enhancement capital expenditure projects driven by retailer and consumer
demand.
Capital partners sought for selected assets
As part of this new strategic initiative, the group will initiate discussions with a number of
domestic, offshore and wholesale real estate institutional investors, seeking capital partners
to jointly own a small number of its quality Australian shopping centres. Co-owners will be
sought to potentially acquire up to a 50% ownership stake in three assets, Galleria in Perth,
The Glen in Melbourne and Colonnades in Adelaide, with all property level services to be
provided by the group’s existing fully integrated management platform.
The strategic objective of realising these funds is to unlock capital and the income growth
potential that exists across the portfolio, maximising group return on equity.
Capital realised from these co-ownership alliances will be used to reduce gearing, further
strengthening the group’s balance sheet, providing flexibility to reinvest into development
and growth opportunities across the broader portfolio and potentially for various other capital
management initiatives.
Final stage of Strategic Review underway
Resources are now being applied to conclude the final stages of the strategic review, the
scope of which includes:
· Identifying, confirming and prioritising the income and capital growth potential of the
entire portfolio;
· Organisational review – structure, roles and responsibilities;
· Optimising the operating cost structures, relative to industry and global benchmarks;
and
· IT system and business process enhancements.
The new executive management team is now largely in place with the appointment of
Marlon Teperson, who will commence as Chief Financial Officer on Monday 16th April 2012.

Summary
Commenting on the initial outcomes of the strategic review, the Chief Executive Officer of
CRF, Steven Sewell said, “The announcement today heralds an important step in the
evolution of the group, as it takes its place as a major AREIT sector participant.
“The decision approved by the Board to pursue a strategic alliance on a selected number of
our existing higher value shopping centres, using the capital realised to unlock the
substantial latent redevelopment upside that exists in the portfolio, is an exciting strategic
initiative.
“Importantly, we confirm that the group’s forecast for FY12 remains unchanged and it is
expected that CRF will deliver on its FY12 earning and distribution guidance as set out in the
Disclosure Documents. A summary of the final outcomes of the strategic review will be
included as part of the year end results presentation, following the release of the group’s full
year accounts.
“The refreshing of the property group’s core strategy and its strengthened management
team particularly in the key functional areas of finance and shopping centre asset and
development management will position us to maximise investment returns in the best
interest of all stakeholders.”