Has Centro Properties finally made a sale? Word is the Centro Southport shopping centre in Queensland has been sold to a local property investor.
Centro had valued the centre at $75 million, but we hear the agreed price was closer to $65 million. Nonetheless, one would have to suspect that any cash at this stage would be welcome.
Centro Southport was under offer in August but the deal fell through. It appears another buyer has stepped up, albeit with a smaller cheque.
If the sale is concluded it will be a boost for the retail landlord, which has until the end of the month - eight working days - to get an agreement from its US banks on extending credit to December 15, in line with its Australian financiers.
It is understood that Centro's management has told the banks it would be in the best interests of all creditors to allow the Centro directors to effectively administer the group through their assets sales program, rather than have a bank do it for them.
That will hold true until one of the banks needs cash urgently, then the official administrators will launch a fire sale.
CNP Price at posting:
7.7¢ Sentiment: Buy Disclosure: Held
