* Carolyn Cummins Commercial Property Editor * June 14, 2008...

* Carolyn Cummins Commercial Property Editor
* June 14, 2008
*

THE beleaguered Centro Properties Group has taken another step in its rebuilding phase with the retirement of its chairman, Brian Healey, and a shake-up of its executives.

Mr Healey, 74, was a director at Centro for 15 years and chairman for the past 5½ years, when Centro made its ill-fated foray into the United States.

Paul Cooper, a Centro director since 2006, will be the new chairman. A former Lend Lease executive, Ross Johnston, will head "strategy implementation", and Gerard Condon, who now heads the Centro syndicate business, will move to its executive committee.

Mr Cooper was a partner of the law firm Freehills and the founder and managing director of Gane Corp Pty Ltd, a specialist corporate advisory firm. He has been a director of Axa Asia Pacific since 1995.

During his tenure, Mr Healey worked with Centro's founder, Andrew Scott, who he in effect sacked in January as Centro's debts reached $4.2 billion.

"It's a bitter-sweet day," Mr Healey told the Herald. "It's a sad day to leave the company, particularly in light of the past six months, but it's sweet in the sense that I can go knowing the company has a good chance for survival in the future.

"I am not making any excuses for what happened, but last December was a watershed for Centro. We were hit with what we called the perfect storm."

Mr Healey witnessed Centro's share price move to a high of almost $10, as it bought New Plan Excel Realty Trust, then run by Glenn Rufrano, for about $6 billion.

Centro hit a market capitalisation value of about $8.6 billion before Mr Scott and the board told investors in December that the group was unable to meet its debt payments of $4.2 billion. Yesterday stocks rose .05c to 28.5c, valuing the group at $245 million.

Centro is facing two multimillion-dollar class actions that allege the board made misleading statements and poor disclosure. Mr Healey said Centro would defend its actions rigorously.

Mr Cooper denied that he was taking up a poisoned chalice.

"Brian's retirement and my appointment has come at a time when we have the extension from our lenders and we can now build on that confidence … and work on our strategic plan and an outcome that is favourable to stakeholders, lenders and our staff," he said.

"My job is to work with [chief executive] Glenn Rufrano. The board recognises we must simplify the Centro structure in an orderly manner and preserve the value for stakeholders."

Centro was granted an extension to repay $4.2 billion in debt by December 15, provided it made every effort to raise cash through assets sales and an equity injection.

Mr Rufrano has been in the US to line up the sale of Centro's stake in the Centro America Fund, worth about $1 billion, and is said to be close to finalising a deal.

In Australia, buyers are said to be looking at individual assets, such as the flagship Glen shopping centre in Glen Waverley, Victoria, rather than taking a stake in a portfolio of 25 centres, but keeping Centro as the manager.