centro puts all us assets on the market

Centro puts all US assets on the market
Email Print Normal font Large font AdvertisementCarolyn Cummins
August 15, 2008

BELEAGUERED Centro Properties has put the rest of its US portfolio, 16 centres worth about $112 million, on the market as it works to raise cash for its bankers before the September 30 deadline.

Yesterday was the cut-off for potential buyers to register interest in three centres owned by the Centro Australia Wholesale Fund, which are worth about $430 million. These include the popular Centro Galleria in Western Australia, which retail players suggested would be on the radar of CFS Retail Trust and possibly Lend Lease or a private superannuation fund.

Centro has until September 30 to pay its Australian and US-based bankers and noteholders the first tranche of about $2.3 billion, after which all the bankers have agreed to roll over the remaining debt (about $4 billion) until December 15. That date marks a full year since the group told investors it was in deep trouble with its financiers.

There have also been some issues of cross-ownership, management and pricing levels that have been a deterrent to the other centres being offered in the Australian sales.

In the US, demand appears to be stronger. The group has already sold 29 of its US assets, raising $US714 million ($815 million) — 10% below the book value. It has another 18 for sale. Centro reports its full-year results on August 29.

http://www.centro.com.au