Troubled shopping central group, Centro Properties and its related Centro Retail Trust, have won more breathing space from their banks to assemble a recapitalisation plan.
In announcements yesterday they said lending groups had further extended debt facilities until December from the deadline of tomorrow.
Apart from a small property sale in the US and a centre sale in Newcastle and in Christchurch in New Zealand, the group has had trouble selling assets to help raise capital to meet debt repayments and to convince the banks that it has a viable plan to rebuild itself.
Centro Properties said yesterday that lenders of $US1.3 billion ($A1.5 billion) associated to its joint venture with Centrol Retail Trust had extended the deadline until December 15.
And an extra liquidity facility of $US25 million has also been provided by the US lending group to the US joint venture as a part of the extension.
"No additional interest margins are payable by Centro during the period of the extension above those previously announced," Centro said in a statement to the ASX.
"US private placement noteholders and the Australian financiers have confirmed their satisfaction with Centro’s progress towards its recapitalisation and that the facilities of $US450 million and $A3 billion remain extended to 15 December 2008.
"There was no requirement to increase the Australian liquidity facility.
"The remaining condition to be met by 30 September 2008, that the Australian financiers, US private placement noteholders and the US lending group reach agreement on the terms on which assets can be sold and the proceeds of such sales applied after that date, has also been satisfied."
Centro said with the extension, it has now achieved the first step to "better position" itself for a longer-term debt restructuring and it continues to work with all lending groups.
Centro withdrew Bankstown Square centre in Southwest Sydney from the market when it failed to attract high enough offers from potential buyers. It also saw the proposed buyer of a group of US malls for more than $US700 million withdraw earlier this month.
Centro expects that buyer to return to attempt to force down the purchase price which was a 10% discount on book value.
Centro Retail Trust, which owns malls managed by Centro Properties, said it gained an extension on $1.1 billion of debt, also until Dec.15.
CER also confirms completion of the sale of Barrington Shopping Centre (NZ) in Christchurch at a purchase price of NZ$36.05 million.
Centro Properties Securities rose 2c to 10.5 cents, Centro Retail rose 1.5c to 14.5 cents.
And another troubled property group, the Gold Coast-based Raptis says it has agreed on a small asset sale. .
Raptis told the ASX yesterday that a subsidiary had agreed to sell its Ferny Avenue development site at Surfers Paradise for $30 million
The sale by Cira International Pty Ltd to Pandanus Beach Investments Pty Ltd will be used to retire debt which stands at well over $700 million.
The sale follows Cira’s sale in late August of the nearby Gold Coast International Hotel site to Amalgamated Holdings Ltd for $56.5 million.
That was before the company’s shares were suspended on September 12 at 40c after receivers were sent into companies that own part of a $700 million project at Southport on the Gold Coast.
The company has said it is seeking a funding injection.
"The group advised on August 29 that it is dependent on the support of its financiers," Raptis told the ASX.
"Joint venture funding partners are being sourced for the Hilton Surfers Paradise Hotel and residences, and the Sheraton Mirage Hotel is on the market.
"The Iluka development site is for sale or joint venture, and other smaller holdings of residual development assets are subject to sale negotiations."
The Ferny Ave sale is subject to 30 days’ due diligence.
