david jones plaza sold at 30 06 09 book value

Good to see another Centro asset being sold in line with 30 June 2009 book valuation

http://www.centro.com.au/NR/rdonlyres/D185BEC1-354B-4D20-8900-38063BFA2618/0/CentroMCS28ConditionalSaleAgreementforDavidJonesPerth.pdf

Centro MCS 28 – Conditional Sale Agreement for David Jones Perth
I write to you on behalf of CPT Manager Limited, the Responsible Entity (RE) of
Centro MCS 28 (the Syndicate).
I am pleased to advise that we have entered into a conditional contract to sell David
Jones Perth at a sale price of $114.5 million which is in line with the 30 June 2009
book valuation. The property is expected to settle on 20 January 2010 and the net
sale proceeds will be used to retire Syndicate debt.
Following this proposed sale the Syndicate gearing ratio (total debt as a proportion of
remaining Syndicate property value) will reduce to around 59%, substantially lower
than its current 70% gearing ratio. The sale will provide additional cash flow benefits
to the Syndicate through a lower loan facility margin and will importantly allow
distributions to be recommenced from the March 2010 quarter.
We will be in a position to provide distribution guidance in late January or early
February, assuming a successful property sale occurs.