SHARES in Centro Properties, which has less than a month to...

SHARES in Centro Properties, which has less than a month to clear another debt extension with its bankers, sank to a record low of 5.8c yesterday as even day traders left the real estate trust sector.

Investors who still follow Centro said concern was growing about whether its bankers and US financiers would be able to keep rolling over its debt, given the worsening state of global economies.

Already Wachovia Bank, based in the US, and which has a small exposure to Centro, has this week called in an outstanding loan covering the GPT/Babcock & Brown European joint venture.

Centro closed the day down 1.6 per cent to 6c, as did another struggling property group, Valad, which dropped to 6.1c. The price collapse came despite Centro's reporting 4.5 per cent sales growth for its Australian shopping centres to $10.8 billion for the year to September 30.

Included in the figures was a decline of 1.9 per centin average turnover for department stores for the September quarter against a figure of 3 per cent for the year to September 30.

In contrast, reflecting the shift in consumer spending, sales growth for discount department stores in Centro's centres were 7.5 per cent for the quarter, compared with 4.6 per cent for the year to September.

The main anchors for Centro are supermarkets, which produced sales growth of 7 per cent for the quarter and an average of 4.5 per cent for the year.

Centro's management, led by Glenn Rufrano maintains that the underlying retail sales business is strong for the group as its centres are mainly anchored by food and household essentials.

Despite the sales growth, Mr Rufrano still has to renegotiate to roll over the group's debt of about $4.5 billion by December 15 or move into official administration.

Mr Rufrano said yesterday that while its Australian business was performing and some centres in Centro MCS Syndicates had been sold, the US remained tough as some its tenants had gone into bankruptcy protection.

"Experienced operating platforms in the US and Australia have kept occupancy and rents stable in a difficult consumer environment," he said.

"US retail sales are reflecting recessionary trends and, while sales growth in Australia has continued to be strong, we are expecting to see sales moderate."

Mr Rufrano is also facing a class action of more than $1 billion, which was thrown into disarray last week when Judge Ray Finkelstein stepped aside after a recusal application by the respondents' solicitors, Freehills and Middletons.