cromwell due diligence, page-5

Hi jamesdenis
The due dilegence sale of CNPs management rights to managage Centro MCS syndicate business is only one aspect of CNPs fee service portfolio said by the media (Australian 6/08)to be worth between $500M to $1billion

The syndicates which own various shopping centres,are not owned by Centro but are managed by CPN on behalf of the various Trust unit holders.

CNP purchased the Man rights from Julius Coleman around 2003 which pre GFC had a valuation of around $5.5 billion .(in march 08 val had fallen to around 1-$2.billion depending on which media outlet you read)
Purchase price for these rights in 2003 was approx $193 Million.which at the time was considered a bargain and I expect would be worth far more currently, which is what I expect Cromwells are trying to determine with their due dilegence now.

For its syndicate management CNP gets a service fee which is substantial.and said to be worth millions of dollars a year in an AFR article in March 08.
Any funds raised by the sale of the management rights to Cromwell or whoever(which would have to approved by the syndicate unit holders) would flow on to CNP or its creditors.

Regardless to whoever manages the syndicates,CNP or Cromwell etc, ownership of the shopping centres in the syndicates would still be in the hands of the various syndicate owners.