lend lease possible buyer for cer assets, page-6

Axlsusie

That is correct. The only Aust debt facility that has an incredibly high gearing level is the $336m maturing in Dec 2011. The four properties secured against this facility are:

Centro Tweed Mall
Centro Mornington
Centro Springwood
and Centro's home ground, The Glen

The next highest is the $248m facility which was refinanced last month. CER has 2 years to get the gearing ratio down from 70% to 60%. This shouldnt be a problem with cap rates likely to tighten in Australia shortly and NOI continuing to grow. With occupancy at close to 100% and a much improved econcomic outlook, Centro is well placed to negotiate much higher base rents on new and renewal leases. Also assuming most lease agreements between Centro and their tenants have a CPI rental increase clause, with inflation on the up, this will be beneficial to Centro.

The other facilities as you pointed out Axlsusie are moderately geared.

If Lend Lease want to make an offer for a Centro asset, fine go ahead but dont think we're going to throw a good quality asset to them at bottom of the cycle prices.

Cheers