Centro restructure plan to be assessed CAROLYN CUMMINS April 23,...

Centro restructure plan to be assessed CAROLYN CUMMINS
April 23, 2010

CREDITORS to Centro Properties have held meetings this week with the group executive and advisers on the implementation of a planned restructure which could see the listing of a new vehicle.

Centro's new managing director, Robert Tsenin, and advisers, Moelis & Co, JPMorgan and UBS, will assess a restructure that will lead to Centro Properties and Centro Retail Trust working as independent operations.

A spokesman for Centro confirmed yesterday that the group was on track with the assessment phase, which is due to be completed by the middle of the year.

One scheme put forward to the group's creditors this week was to look at separating all of the Australian and US assets and creating a new listed vehicle.

That could entail a capital-raising but would also incur large fees for new listings and paying for the advisory work, as well as stamp duty costs.

Centro has a cross-ownership structure where Centro Properties owns assets based in the US and Australia, some of which are then managed by Centro Retail Trust.

Some creditors, however, are said to have been uninspired by the initial restructuring suggestion.

The creditors also did not see much worth in a capital-raising, particularly when Centro Properties shares are trading at 25 and Centro Retail at 21.

Source: The Sydney Morning Herald