Centro Properties Group and its related Centro Retail Trust (CER) have both appointed advisers to assess options to restructure the companies and restore value for investors.
Centro Properties has appointed JP Morgan and Moelis & Company LLC as co-advisers while CER has appointed UBS.
"The objective of the assessment phase is to identify the means by which the enterprise value of the Centro group, of which CER is a significant component, can be maximised and to separately identify and analyse execution risks," the companies said in a statement on Thursday.
Although CER and Centro have each appointed independent advisers, UBS, JP Morgan and Moelis will work on a collaborative basis during the assessment phase.
Centro Properties chairman Paul Cooper said the assessment of a potential restructure was the next step for Centro, which was one of the highest profile Australian companies to be negatively impacted by the global financial crisis.
Mr Cooper said Centro had made significant progress in 2009 as it completed a debt stabilisation agreement and drove the separation of the Centro and CER boards.
"These achievements in conjunction with actively managing our properties and funds, have delivered a platform from which we can now focus on long-term strategies aimed at simplifying Centro's structure and restoring value," Mr Cooper said.
"Restoring value will take time and it is important to emphasise again that a transaction of any type is not imminent."
JP Morgan already has a relationship with Centro Properties, which would be valuable given the complex nature of the business.
The CER assessment is expected to be completed during the second quarter of 2010 while the Centro Properties review should be done by mid-2010.
"The work that will be done will build significantly on the progress made in 2009 where we created a platform from which we can now focus on longer-term strategies," CER chairman Peter Day said.
CNP Price at posting:
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