Hi Papertigger,A half sale of these 3 larger centres would...

Hi Papertigger,

A half sale of these 3 larger centres would unlock approx $665M for Centro as the full value of these centres as at 31 Dec was $1.33b.

Gearing would reduce significantly and they would then look to redevelop centres where they can generate a high return on development.

the cap rates of the Galleria and the glen are about 6% so they would look to direct investment into centres where they can generate a significantly stronger return on equity.

Have hundreds of millions of dollars in these large centres generating a net return of over 6% doesnt make sense given the cost of debt we are paying is about 1.5% higher.

EPS would increase after the half sale of these assets and would further increase where profitable redevelopment opportunities are pursued.

All in all, an excellent announcement.

Cheers