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Centro close to local asset deal
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By a staff reporter

Shares in Centro Properties Group have jumped 15 per cent on reports international investors are close to sealing a deal to purchase the embattled firm's $1.16 billion local property holdings.

LaSalle Investment Management, which is said to have bought Centro's US properties for $US714 million, is believed to be frontrunner in the Australian asset sale, The Sydney Morning Herald reported.

A fund manager from a local real estate trust has said no Australian-listed shopping centre operators would be the buyer, which excludes CFS Retail Trust, GPT, Lend Lease, Stockland and Mirvac.

Centro has been under pressure to sell assets to help pay down debt, after receiving several extensions on the repayment of $US2.8 billion, now due in December.

The company's troubles emerged late 2007, when its shares tumbled 80 per cent after it said it was having difficulty with debt obligations linked to properties in Australia, New Zealand and the US.

Centro is also facing two shareholder class actions.

Centro Property Group's shares closed up 14.55 per cent, or 4 cents, at 31.5 cents.


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