quietly confident

A positive from our friend CC

Centro quietly confident



* Carolyn Cummins
* September 10, 2008
*

CENTRO Properties says the decision to withdraw its $600 million Centro Bankstown shopping centre from sale will not affect its recapitalisation program.

The centre is half-owned by the syndicate Centro MCS 28 and Centro Retail Trust. Centro Properties is the manager.

Centro has until September 30 to convince its US lenders to extend their debt deadline to December 15, aligning it with that of the group's Australian lenders.

It is believed the management of the retail landlord is quietly confident it will get its extension. But should any of the banks in the syndicate opt for immediate cash, Centro will go into administration and a fire sale of assets will occur.

Centro chief executive Glenn Rufrano said: "The syndicate business is separate to the Centro headstock. The money raised from any asset sale goes to repay debt (in the syndicate) and then to syndicate investors.

"Centro Properties stands alongside all other investors in this regard. Centro MCS syndicates are separate businesses and are not directly related to the headstock financing or recapitalisation."

He said he was in the middle of a four-week program of meetings with the syndicate and other unlisted investors, and the feedback had been positive.

He also said buyers found it hard to arrange finance for shopping centres valued at more than $600 million in the current climate.

Centro shares closed down 1.5¢, or 10%, at 13.5¢