Just a refresher :Westfield Group (OOTC:WFGPY) , Commonwealth Bank-managed CFS Retail Property Trust (OOTC:CGNRF) and GPT Group (OOTC:GPTGF) are reportedly interested in buying Centro's Australian wholesale trust, which has 2.6 billion Australian dollars worth of assets.
But selling the entire group or some assets won't be easy. Potential buyers will struggle to secure financing under tight credit conditions caused by the US subprime crisis, said Cashmore.
Westfield, considered the world's largest owner of shopping centers, recently shelved plans to sell more than 700 million Australian dollars worth of property because of the credit crunch.
The Australian Securities and Investments Commission is reportedly in discussions with Centro over its credit crunch meltdown.
Meanwhile, Macquarie Equities said in a report that funding difficulties faced by highly leveraged groups such as Centro are taking a turn for the better 'Weak financial companies are being taken over by the stronger,' Macquarie said in a report on global economics entitled 'A Reality Check'.
The report said capital is flowing to large financial institutions that need it.
While Centro is a smaller entity, banks including Commonwealth Bank of Australia Ltd, Australia & New Zealand Banking Group Ltd (OOTC:ANZBY) , National Australia Bank Ltd (OOTC:NABZY) and US lenders are prepared to allow Centro time to resolve its difficulties.
Centro's banks reportedly want the sale of Centro's half interest in a 4.6-billion-Australian dollar wholesale fund of Australian shopping centers in return for long-term funding.
At 1.55 pm (0255 GMT), Centro was down 22 cents or 25.6 percent at 64 cents.
(1 US dollar = 1.11 Australian dollars) [email protected] [email protected] bhx/aj/ng/zr Copyright Thomson Financial News Limited 2007. All rights reserved
CNP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
