Theres no need for a restructure. CER recapitalised when it sold...

Theres no need for a restructure. CER recapitalised when it sold its US portfolio. Gearing was reducing from 75% to around 40%.

We are now in a strong position to not only refinance but negotiate better margins on new and existing debt facilities.

It is odd that we have spent the last 3 years parting ways with CNP via getting an independent board, closing equity hedges etc and now its been decided we should get back with our ex.

I say we either continue operating as an entity on our own or sell out the portfolio. Creating a new Centro may seem like a warm and fuzzy idea but we are much better on our own.

Dont let the ann scare you when it suggests the risks of not amalgamating with the other Centro entities. Big deal if CNP enters administration and we are paying management fees to the receiver/administrator instead of Centro. The management rights could be tendered out to a different party or CER could pick them up at reasonable price themselves.

As I said in my last post, we'll still have the same tenants, same gearing, same rental contracts, same foot traffic through the centres, same valuations etc. Only the macro environment can change a few of these variables.

Cheers