centro plaza for sale at the right price ...

TP Note: I hope this press article meets with Media Watch's "apples" approval - lol. - Pie :)
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Source: www.borderwatch.com.au

Centro plaza for sale at the right price
Posted on December 5, 2008, 1:01pm
SANDRA MORELLO

Centro management yesterday confirmed its $50m Mount Gambier shopping centre could be sold if the financially embattled company was offered a good price.

This follows growing speculation that a Mount Gambier businessman has made an offer to purchase the 40-plus shop complex.

It is understood the offer made was possibly below the record $51.5m price Centro paid for the region’s largest shopping centre just over 12 months ago.

While Centro management declined to comment yesterday on the possible sale, it revealed the troubled property developer would consider offloading the asset which was one of its better performing centres in regional Australia.

The company has recently sold Hamilton Centro for an undisclosed sum as part of its efforts to raise millions of dollars by December 15 to stay afloat.

Centro spokesperson Mitchell Brown told The Border Watch yesterday that while the company had not listed Mount Gambier for sale, it would consider selling the shopping centre for a good price.

“If someone makes a good offer it would be considered,” said Mr Brown, who explained the company had sold 21 assets from July to November.

“We are not actively campaigning to have that sold, but if we were offered a good price it would be considered.”

Meanwhile, Centro chief executive Glenn Rufrano has said the company would continue to sell assets, following the company’s financial turmoil in the United States.

“This calendar year we have closed $165m of sales in the US and have had success in Australia and New Zealand,” Mr Rufrano said.

“Our asset sale program will continue where prices are appropriate.”

Centro bought the property in July 2007 for $51.5m, which was a record sale price in Mount Gambier’s commercial sector.

The property - which covers 12,935 square metres of gross lettable area and includes Kmart, Coles and 40 speciality shops - was bought from Village Fair.

Village Fair had mooted plans to extend the development into the rail corridor to significant expand the size of the shopping centre.

But since the purchase, Centro management has made no announcement as to whether it also wanted to expand the centre.

Meanwhile, Mount Gambier City Council chief executive Greg Muller said yesterday the success of the rail corridor redevelopment was not dependent on the extension of the shopping centre.

“We have realised for some time given the financial difficulties of Centro, (they) may not be a player,” Mr Muller said.

While claiming there was some thought that a retail component would draw people to the redeveloped rail corridor, he said council’s vision was flexible and no plan had been locked in.

He said the rail corridor redevelopment could be a stand-alone outstanding development without the involvement of the shopping complex which was adjacent the area.


Ends.

Cheers, Pie :)