positive press

Don't Know about anyone else but this seems positive to me!

Money1



Centro rejects syndicate offer
Carolyn Cummins
February 16, 2011
CENTRO PROPERTIES has surprised investors with its decision to reject a plan to sell its syndicate business to the Brisbane-based Cromwell Group.

Centro's director is continuing to negotiate the sale of its $13.5 billion shopping centre portfolio in Australia and North America to repay the group's mountain of debt.

Centro has renegotiated repayment terms for its $17 billion total debt, but some of its bankers, including the US hedge funds Paulson and Appaloosa, are keen to get their cash.

Advertisement: Story continues below
A number of retail landlords are looking at the centres, either as single assets or a portfolio.

Stockland, Blackstone Group, a partnership of a Morgan Stanley real estate fund and Starwood Capital Group, and a consortium led by NRDC Equity Partners and Lend Lease are all said to be interested. Due diligence ends on February 24.

But interested parties were concerned yesterday that the sale of the Centro MCS Syndicates funds management business to Cromwell had expired.

Centro is run by Robert Tsenin, who has been in the US talking to financiers. Centro said in a statement the decision to conclude the discussions with Cromwell had the support of Centro's lenders.

''Centro will continue to own and manage the largest syndicate property funds management platform in Australia, comprising over $5 billion of funds under management, with an ongoing focus on driving returns for investors in its managed funds,'' the group said.

''As previously announced, Centro continues to explore restructure and recapitalisation opportunities to deliver a holistic solution in respect of its businesses and assets in consultation with relevant stakeholders.''