The embattled Centro Properties Group has agreed to sell nearly all the properties in its wholesale Centro America Fund (CAF).
Centro will sell 29 of the 31 properties in CAF to an unnamed private real estate investment adviser for, a company statement to the Australian Securities Exchange (ASX) said yesterday.
Centro is expected to earn $731 million on the sale, which is 10 per cent less than what the assets were worth when they were bundled up into the CAF.
“As we have previously advised, the sale of the CAF portfolio is a key step in providing liquidity to our balance sheet,” Centro chief executive Glenn Rufrano said.
The sale is still subject to due diligence but the proceeds would be used to cut down the company’s debt, he said.
The announcement came as Centro has $2.8 billion of debt due to be refinanced within four months. Nearly $500 million is owed to private American investors and $2.3 billion is owed to a group of banks.
It was unclear whether Centro would look to sell its profitable Australian and New Zealand properties before the deadline.
The group is also facing lawsuits of over $1 billion.
