Centro chief executive Andrew Scott has resigned in favour of US counterpart Glenn Rufrano.
The chief executive of embattled real estate fund Centro Properties Group has resigned.
Andrew Scott will step down with immediate effect and be replaced by his United States counterpart Glenn Rufrano.
Scott, who will take home $3 million as part of his severance package, has been under fire since the group announced in December it was struggling to refinance $3.9 billion worth of debt.
Rufrano was previously chief executive of Centro US and joined the firm after it last year bought US real estate firm New Plan, where he was chief executive.
Rufrano's salary and bonus package will be $3 million, plus 1 million Centro share options.
The firm said Scott would remain to assist Centro as a consultant until March 31.
Centro placed its shares on trading halt last Friday until January 15 pending the release of the announcement.
News of the imminent statement came amid mounting speculation ASIC had stepped in to investigate the firm's disclosure.
According to recent reports, Centro failed to properly account for more than $1 billion of debt in its June 30 accounts.
The firm's shares took yet another hammering on the Australian Securities Exchange last week. They fell almost 25 per cent last Thursday to 86 cents, down from a May peak of $10.
News also emerged last week that fund manager MFS had offered to manage 35 unlisted retail property funds that belong to Centro.
Centro's share price fell 85 per cent in December after the firm announced it was struggling to refinance its debt.
Through its various funds Centro has investments in over 700 shopping centres in the US worth $17 billion. The firm had a total of $26.6 billion under management as of June 2007.
Centro's shares were trading 28 per cent down at 62 cents. They closed last Thursday at 86 cents.
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