Embattled Centro Properties Group Ltd may have to offload two Newcastle shopping centres not previously offered for sale in order to satisfy a key debt requirement.
New independent valuations have been requested for Centro's Lake Macquarie and Mount Hutton shopping centres, which could raise loan-to-valuation ratios above the level allowed under its debt facility, according to The Australian.
If Centro is unable to renegotiate the stipulation it would be forced to sell the centres and wind up the MCS 42 syndicate they belong to, the paper said.
The syndicate has a book value of around $75 million.
However, the company's latest problems are unrelated to it's recapitalisation requirements this month.
Centro and its affiliates have around $7.4 billion of debt to refinance by the end of the year, $1.2 billion of which expires September 30.
Earlier in September, Centro announced the collapse of a deal to sell 29 of its 31 US shopping centres in the Centro America Fund.
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