Centro Properties Group has ended discussions with Cromwell Property Group over the sale of the Centro MCS Syndicates funds management business.
In a statement to the Australian Securities Exchange, Centro said it had concluded due diligence discussions with the property group.
"This decision to conclude the discussions with Cromwell has the general support of Centro's lender group," the company said.
"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.
"Centro cautions that there is no guarantee that this process will result in a specific transaction or outcome."
Cromwell chief executive Paul Weightman said Centro's decision to further the parties' discussions was a disappointment.
"We believe Cromwell would have made a significant difference to the syndicates business and the interest of investors in the Centro syndicates, however, we recognise the commercial realities of the situation given the uncertainty surrounding the broader Centro platform," Weightman said.
In November last year, the Centro board granted Cromwell exclusive due diligence over the Centro MCS Syndicates business.
Meanwhile, cross-claims have been filed by PricewaterhouseCoopers against Centro Properties Limited and CPT Manager Limited as part of class action proceedings in the Federal Court.
The cross-claims come in response to earlier claims filed by Centro against the auditing group.
