CENTRO Properties Group is putting four shopping centres across the country up for sale in a portfolio worth $1.15 billion to help pay down its $4.2 billion in debt.
But any deal is contingent on Centro remaining the manager of the properties - a big deterrent in the past to any such sales.
The portfolio comprises a 50 per cent unencumbered interest in Centro Galleria and Centro Halls Head in Western Australia and Centro Colonnades in South Australia, with a 100 per cent freehold interest in Centro Bankstown in Sydney. In documents being sent to prospective buyers, obtained by the Herald, the selling agent Jones Lang LaSalle said the deadline for first-round bids was July 10. The data room for serious bidders will be open from July 16 until August 14.
"Following the transaction, it is proposed that the day-to-day property management, leasing and development services will continue to be provided by wholly owned subsidiaries of Centro to the portfolio," the document says.
"The co-ownership of the residual 50 per cent of the portfolio by the group-related entities and/or syndicates ensures that interests will be aligned to continue delivering strong future returns."
Originally the plan was to sell a portfolio of 28 properties under the Centro Australia Wholesale Fund banner, but after market pressure Centro's chief executive, Glenn Rufrano, said he would split up CAWF into individual sales and review whether Centro would remain as the manager.
As a result, the planned sale of assets in late March was deferred. But after discussions with interested parties Centro has opted to bundle these key assets into a portfolio.
Other sought-after properties include Centro Mandurah in Western Australia and Centro The Glen in Melbourne.
Centro is in talks with Salta Properties, which owns the other half of Centro Victoria Gardens in Melbourne, and Leda Holdings, co-owner of Centro Tuggeranong in Canberra and Centro Hervey Bay in Queensland.
Mr Rufrano, who took over the running of Centro in January when it failed to meet its immediate deadline to repay at least $2.3 billion of debt, was granted an extension to pay all the debt to December 15 on the proviso that he started selling assets as soon as possible.
The shares rose 0.5c to 23.5c.
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