centro flags sale of service business, page-20

Hi Swap,

Thanks for your insight. If the services business is spun off, it would be important for Centro to keep a stake for two reasons:

1. To preserve ownership of a valuable growing business.

2. So the interests of the client (Centro) and managers (new owners) are aligned. The new entity would expect Centro to commit to long-term management contracts over its shopping centre assets otherwise the business would be worth nothing. Having the client and new owners interest aligned will make the partnership more effective and managable in my opinion.

"It would also allow ACM to go off and chase their own business outside the Centro universe."

Good point!