CNP - Centro Properties Group
- Thread starter traderandy
- Start date
- Joined
- 11 March 2008
- Posts
- 65
- Reactions
- 0
Just to toss ideas around.
I am not a lawyer but a logical person.
I think one thing is that, even though there were some issues with their disclosure, it may be yet to prove that there is a direct link between the non/inappropriate-disclosure and the losses suffered by the shareholders.
It may well be that the direct link does not stand. SP fall was aggravated by the credit crunch caused by the US sub-prime mortgage crisis.
ANyone has any idea?
Thanks, L
I am not a lawyer but a logical person.
I think one thing is that, even though there were some issues with their disclosure, it may be yet to prove that there is a direct link between the non/inappropriate-disclosure and the losses suffered by the shareholders.
It may well be that the direct link does not stand. SP fall was aggravated by the credit crunch caused by the US sub-prime mortgage crisis.
ANyone has any idea?
Thanks, L
- Joined
- 7 May 2008
- Posts
- 3
- Reactions
- 0
Personally, I think it will depend on whether the fed judge(s) consider centro's "non-disclosure" as exceptions under ASX listing rule 3.1A.1incomplete info or 3.1A.3 reasonable person. Centro may have evidence for the first condition. but for the 2nd condition, reasonable person, IMF may convince the judge. I think( not sure if it's rite) centro may take this down to civil remedy-director's duties, and therefore bring up Andrew Scott and the former CFO/accountant/auditors, trying to prove that they have appropriately delegated their power to certain candidates based on a reasonable person's standard. The worst, scenario would be former officers are liable for the breach of their duties.
Not sure it's rite. Just personal opinions
Not sure it's rite. Just personal opinions
In a case like this there are a lot of desperate people who would like to pass on the blame and try to get some compensation. There is also a group of legal eagles looking for someone to fund their lifestyle who will find anything that is in any way likely to help their cause. I would be surprised if they have much of a case against CNP. I think it will get passed over easy. In the meantime it does not help the SP which is suffering a minor lemming rush as speculating dealers exit positions. Let the dust settle and I, for one, am counting on an SP increase. Anytime a share price falls more than 3% or more the sell triggers cause the lemmings to sit up and get active.
I would like to thank Lavender fo posting the interview with Glenn Rufrano. Great to get an insight from the man at the top!!
I would also like to thank SonicWind for his explanation of EBIT. I am still concerned but the interview with GR is a bit reassuring on Centro's current position.
In relation to the litigation, the credit crunch exacerbated the misclassifying of short term liabilities as long term liabilities. While people first became aware of the credit crunch in August last year, its full impact was not felt until November so IMO it might be a hard one for shareholders to win in terms of proving that their decision making was impaired. But CNP may be penalised for the non-disclosure? I am concerned how much it will cost the company in litigation costs. Does anyone have an idea on whether companies generallyhave indemnity insurance to cover litigation costs for situations like this?
Tulasi
I would also like to thank SonicWind for his explanation of EBIT. I am still concerned but the interview with GR is a bit reassuring on Centro's current position.
In relation to the litigation, the credit crunch exacerbated the misclassifying of short term liabilities as long term liabilities. While people first became aware of the credit crunch in August last year, its full impact was not felt until November so IMO it might be a hard one for shareholders to win in terms of proving that their decision making was impaired. But CNP may be penalised for the non-disclosure? I am concerned how much it will cost the company in litigation costs. Does anyone have an idea on whether companies generallyhave indemnity insurance to cover litigation costs for situations like this?
Tulasi
- Joined
- 11 March 2008
- Posts
- 65
- Reactions
- 0
Hi Tulasi,
That's OK. The interview was very good, and I personally do have a lot of confidence in Glen R. He seems to have a lot of very good qualities for a leader - decisive and tenacious, astute and flexible negotiator with banks, etc. He certainly has worked very hard and done a great job so far.
This gave the shareholders and the lenders a lot of confidence.
I don't think May 30 is really another timeline for CNP, rather it is just for finalising documentation. With regard to the liquidity line, I reckon, it is just part of the deal, it will definitely happen, if the local banks do not provide, we would most probably expect banks like JP Morgan and Bank of Amercia to intervent or provide such lines at reasonable conditions themselves.
The key thing here is that the banks (most of them) and CNP are now in the same boat in the remote ocean and they need to help each other to survive and land at the bank.
The IMF guys are just opportunists taking advantage of the situation.
In a way, the litigation happening now is actually a positive sign, i.e. the company will survive and have something to pay if the claims are legally recongisable/enforceable. This is why it happened just after the debt extension announcement. Assuming IMF is not misrepresenting and there are really a large number of institutional investors joining the litigation, they made such decision only when they saw CNP's chances of survival are high.
In view of this, and also that it is quite likely that the directors and the accountants (in particular) would be liable for the classification of ST borrowings under non-current liabs, their professional indemnity insurance will be used for the claims, if these people are really liable.
On the other side, when it comes to the shareholders' losses, there is not an entirely direct link between the accounting misrepresentations and their losses. The credit crunch actually excerbated the situation and led to the huge losses of shareholders.
Hence, whilst the litigation may cost CNP financial and legal resources, the actual legitimate claims amount is not likely to be over AUD100mln as IMF guys have claimed.
Also, assuming that at least some of the shareholders (individual or institutional) are still holding the shares, they will also be working smartly with the IMF guys and make sure that the timing of any announcements is appropriately selected not to cause too much swings to the share price.
I suppose, after seeing the share price swings last Friday and today, these shareholders and their attorney will be more mindful of the timing, within th e realms of ASX legal compliance from IMF's prospective. There should be a more balanced approach as to how they handle the case.
In short, I see the bigger picture as being CNP debt reduction/recapitalisation with the support of the banks. the litigation may dampen share price rise in the short term, but it is not going to reverse the overall positive direction CNP is leading to. The litigation itself also evidenced the investors' view that CNP will survive. Besides, the likely amount, even if in the worse case scenario (i.e. CNP/directors are liable) is not likely to be the amount IMF claimed. The inflated AUD100mln or above claims is also not that significant in the whole scheme of things.
That's OK. The interview was very good, and I personally do have a lot of confidence in Glen R. He seems to have a lot of very good qualities for a leader - decisive and tenacious, astute and flexible negotiator with banks, etc. He certainly has worked very hard and done a great job so far.
This gave the shareholders and the lenders a lot of confidence.
I don't think May 30 is really another timeline for CNP, rather it is just for finalising documentation. With regard to the liquidity line, I reckon, it is just part of the deal, it will definitely happen, if the local banks do not provide, we would most probably expect banks like JP Morgan and Bank of Amercia to intervent or provide such lines at reasonable conditions themselves.
The key thing here is that the banks (most of them) and CNP are now in the same boat in the remote ocean and they need to help each other to survive and land at the bank.
The IMF guys are just opportunists taking advantage of the situation.
In a way, the litigation happening now is actually a positive sign, i.e. the company will survive and have something to pay if the claims are legally recongisable/enforceable. This is why it happened just after the debt extension announcement. Assuming IMF is not misrepresenting and there are really a large number of institutional investors joining the litigation, they made such decision only when they saw CNP's chances of survival are high.
In view of this, and also that it is quite likely that the directors and the accountants (in particular) would be liable for the classification of ST borrowings under non-current liabs, their professional indemnity insurance will be used for the claims, if these people are really liable.
On the other side, when it comes to the shareholders' losses, there is not an entirely direct link between the accounting misrepresentations and their losses. The credit crunch actually excerbated the situation and led to the huge losses of shareholders.
Hence, whilst the litigation may cost CNP financial and legal resources, the actual legitimate claims amount is not likely to be over AUD100mln as IMF guys have claimed.
Also, assuming that at least some of the shareholders (individual or institutional) are still holding the shares, they will also be working smartly with the IMF guys and make sure that the timing of any announcements is appropriately selected not to cause too much swings to the share price.
I suppose, after seeing the share price swings last Friday and today, these shareholders and their attorney will be more mindful of the timing, within th e realms of ASX legal compliance from IMF's prospective. There should be a more balanced approach as to how they handle the case.
In short, I see the bigger picture as being CNP debt reduction/recapitalisation with the support of the banks. the litigation may dampen share price rise in the short term, but it is not going to reverse the overall positive direction CNP is leading to. The litigation itself also evidenced the investors' view that CNP will survive. Besides, the likely amount, even if in the worse case scenario (i.e. CNP/directors are liable) is not likely to be the amount IMF claimed. The inflated AUD100mln or above claims is also not that significant in the whole scheme of things.
- Joined
- 23 May 2007
- Posts
- 40
- Reactions
- 0
I am wondering when to get back in, Mondays expected drop wasn't as big as I was anticipating. I thought that once it had got into the .3's it would drop substantially. Today has been a rather dithering day and it does look like it will continue on a gradual decline. Question is will it get down to the .2's?
The last 2 days showing it gets a good support at @0.375/0.38. It looks like more daytraders buying and selling than real investors. If there is no real investor selling means the SP would not drop too far. Looking at the chart, if it open higher tomorrow then the Boll. indicator would indicate the bottom has hit, ready for resersal.
I still reckon it would be sideway for the rest of the week. Next week would start some action until 29/05 (before the next ann.).
It might go back to where it was before last ann., if 30/5 ann. as expected then shareholders would be laughing .....
again - This is my personal view only - DYOR ....
Be patient ... will get there ...
Seems Centro has made the first of the previously outlined property sales (Southport).
Price of $75 million represents book value and is noted as "good sign" for local mkt buoyancy. Proceeds to pay down debt (surprise.)
Full article in AFR and precis on Business Spectator.
I believe its not fully finalised but seems a good start.
Price of $75 million represents book value and is noted as "good sign" for local mkt buoyancy. Proceeds to pay down debt (surprise.)
Full article in AFR and precis on Business Spectator.
I believe its not fully finalised but seems a good start.
- Joined
- 11 March 2008
- Posts
- 65
- Reactions
- 0
Good News.
See the article below, retail property price strongly co-relates to retail sales.
This is very positve for CNP's asset sale/debt reduction process.
Also, remember that their properties are mainly for non-discretionary goods retailing.
----------------
US retail sales resilient
Email Print Normal font Large font AdvertisementMay 14, 2008 - 7:22AM
Page 1 of 2
US retail sales excluding cars were surprisingly strong in April, showing consumers still willing to add spending punch to the economy despite soaring food and energy prices, a government report showed.
The report echoed recent data implying underlying economic durability, including fewer job losses in April than feared and a surprisingly strong pace of first-quarter productivity that buoys hope for corporate profits.
The Commerce Department said retail sales declined 0.2% but excluding cars, sales rose 0.5%. Economists expected total sales to slip 0.1%, but had forecast just a 0.2% gain outside of autos.
''I think it's a report that tells you the economy is very weak, but if we are in a recession it's going to be a real short one,'' said Robert MacIntosh, chief economist at Eaton Vance in Boston.
Analysts hope consumer spending will cushion an economic slowdown and offset the dampening impact of falling housing prices, particularly with an added boost coming from government rebate checks being sent to about 130 million taxpayers under a stimulus plan.
The economy is forecast to grow at a scant 0.2% annual rate in the second quarter, slowing from the anemic 0.6% growth rate in the previous two quarters, according survey of economists released by the Philadelphia Federal Reserve Bank on Tuesday.
The retail sales data boosted the dollar's value by supporting a view the US Federal Reserve may keep official interest rates on hold. But US Treasury debt prices, which tend to benefit from lower rates, lost ground.
Stock prices were whipsawed throughout the trading session. They were buoyed initially by the retail sales data but suffered later after a bevy of Fed speakers warned that markets remain unsettled and inflation was still a threat.
The Dow Jones industrial average fell moderately by 44.13 points to end at 12,832.18. But the Nasdaq Composite Index closed up 6.63 points at 2495.12.
On the Sydney Futures exchange, the June share price index futures contract was down 2 points to 5842. The Australian dollar was trading at 94.11 US cents compared to 94.22 late yesterday.
Other data highlighted the squeeze on consumers, who have caught between rising food and energy prices and a crumbling housing market.
The Labor Department said US import prices climbed 1.8% in April as prices for petroleum and non-petroleum products climbed, feeding worries about the potential for inflation.
Import prices have jumped 15.4% over the past year, the biggest 12-month gain since the government began publishing the data more than a quarter century ago.
Separately, the National Association of Realtors said median values of existing single-family homes in metropolitan areas fell 7.7% from levels a year ago.
The Federal Reserve has cut official interest rates 3-1/4 percentage points to 2% since mid-September to shield the economy from a credit crunch sparked by the housing crisis, hoping to keep consumers from choking off the spending that fuels two-thirds of US economic activity.
Fed Chairman Ben Bernanke, speaking by teleconference to a Federal Reserve Bank of Atlanta conference in Sea Island, Georgia, cautioned that strains remain in the nation's financial markets.
Analysts said the retails sales numbers might increase chances that Fed policy-makers will pause their rate-cutting campaign and focus more closely on controlling inflation.
''Overall, this supports the view that the Fed will hold interest rates for the next two to three (policy) meetings,'' said Ron Simpson, director of currency strategy for Action Economics in Tampa, Florida.
In April, sales of building materials gained 1.9%, more than reversing March's 1.5% fall. General merchandise store sales were up 0.5%, well ahead of March's 0.1% rise.
Lofty gasoline prices have pinched consumers' pocketbooks and reduced their interest in new cars.
Auto dealers suffered a 2.8% drop in sales during April, adding to the 0.5% decline posted in March. Gasoline stations reported a 0.4% decline in April sales after a 1.6% rise in March.
The new level of cost consciousness turned up in operating results for Wal-Mart Stores, which rose 7% in the quarter ended April 30. The largest US retailer noted its customers were seeking bargains on necessities such as food and were straining from paycheck to paycheck.
''Even if food prices are inflating these figures a bit, consumers still appear prepared to keep spending as long as deals can be had and Uncle Sam foots some of the bill,'' said Michael Gregory, an analyst with BMO Capital Markets.
Reuters
See the article below, retail property price strongly co-relates to retail sales.
This is very positve for CNP's asset sale/debt reduction process.
Also, remember that their properties are mainly for non-discretionary goods retailing.
----------------
US retail sales resilient
Email Print Normal font Large font AdvertisementMay 14, 2008 - 7:22AM
Page 1 of 2
US retail sales excluding cars were surprisingly strong in April, showing consumers still willing to add spending punch to the economy despite soaring food and energy prices, a government report showed.
The report echoed recent data implying underlying economic durability, including fewer job losses in April than feared and a surprisingly strong pace of first-quarter productivity that buoys hope for corporate profits.
The Commerce Department said retail sales declined 0.2% but excluding cars, sales rose 0.5%. Economists expected total sales to slip 0.1%, but had forecast just a 0.2% gain outside of autos.
''I think it's a report that tells you the economy is very weak, but if we are in a recession it's going to be a real short one,'' said Robert MacIntosh, chief economist at Eaton Vance in Boston.
Analysts hope consumer spending will cushion an economic slowdown and offset the dampening impact of falling housing prices, particularly with an added boost coming from government rebate checks being sent to about 130 million taxpayers under a stimulus plan.
The economy is forecast to grow at a scant 0.2% annual rate in the second quarter, slowing from the anemic 0.6% growth rate in the previous two quarters, according survey of economists released by the Philadelphia Federal Reserve Bank on Tuesday.
The retail sales data boosted the dollar's value by supporting a view the US Federal Reserve may keep official interest rates on hold. But US Treasury debt prices, which tend to benefit from lower rates, lost ground.
Stock prices were whipsawed throughout the trading session. They were buoyed initially by the retail sales data but suffered later after a bevy of Fed speakers warned that markets remain unsettled and inflation was still a threat.
The Dow Jones industrial average fell moderately by 44.13 points to end at 12,832.18. But the Nasdaq Composite Index closed up 6.63 points at 2495.12.
On the Sydney Futures exchange, the June share price index futures contract was down 2 points to 5842. The Australian dollar was trading at 94.11 US cents compared to 94.22 late yesterday.
Other data highlighted the squeeze on consumers, who have caught between rising food and energy prices and a crumbling housing market.
The Labor Department said US import prices climbed 1.8% in April as prices for petroleum and non-petroleum products climbed, feeding worries about the potential for inflation.
Import prices have jumped 15.4% over the past year, the biggest 12-month gain since the government began publishing the data more than a quarter century ago.
Separately, the National Association of Realtors said median values of existing single-family homes in metropolitan areas fell 7.7% from levels a year ago.
The Federal Reserve has cut official interest rates 3-1/4 percentage points to 2% since mid-September to shield the economy from a credit crunch sparked by the housing crisis, hoping to keep consumers from choking off the spending that fuels two-thirds of US economic activity.
Fed Chairman Ben Bernanke, speaking by teleconference to a Federal Reserve Bank of Atlanta conference in Sea Island, Georgia, cautioned that strains remain in the nation's financial markets.
Analysts said the retails sales numbers might increase chances that Fed policy-makers will pause their rate-cutting campaign and focus more closely on controlling inflation.
''Overall, this supports the view that the Fed will hold interest rates for the next two to three (policy) meetings,'' said Ron Simpson, director of currency strategy for Action Economics in Tampa, Florida.
In April, sales of building materials gained 1.9%, more than reversing March's 1.5% fall. General merchandise store sales were up 0.5%, well ahead of March's 0.1% rise.
Lofty gasoline prices have pinched consumers' pocketbooks and reduced their interest in new cars.
Auto dealers suffered a 2.8% drop in sales during April, adding to the 0.5% decline posted in March. Gasoline stations reported a 0.4% decline in April sales after a 1.6% rise in March.
The new level of cost consciousness turned up in operating results for Wal-Mart Stores, which rose 7% in the quarter ended April 30. The largest US retailer noted its customers were seeking bargains on necessities such as food and were straining from paycheck to paycheck.
''Even if food prices are inflating these figures a bit, consumers still appear prepared to keep spending as long as deals can be had and Uncle Sam foots some of the bill,'' said Michael Gregory, an analyst with BMO Capital Markets.
Reuters
- Joined
- 11 March 2008
- Posts
- 65
- Reactions
- 0
Full AFR article from another forum
-
Source: The Australian Financial Review newspaper [Page 56 - Property]
Wednesday 14 May 2008
Centro to sell Southport mall for $75m
Mathew Dunckley and Paddy Manning
Key Points
The sale price is in line with the most recent book valuation.
Developer Norm Rix says his bid was knocked back last week.
Other properties on Centro's books are seen as more desirable.
Analysts said the price paid was encouraging for the sector.
The break-up of Centro Property Group's Australian shopping centre portfolio has begun in earnest with the disposal of Centro Southport on the Gold Coast for about $75 million.
The sale of the Southport, owned 50-50 by the Centro Retail Trust and the Centro Australian Wholesale Fund (CAWF), was mentioned in a lengthy disclosure document posted with the US Securities and Exchange Commission overnight about the group's recent debt-extension arrangements.
"Management of Centro has received an offer for the purchase of Southport Centre for approximately $75 million," the document said.
"Centro now desires to enter into an agreement of sale with a potential buyer ... and to apply the proceeds of such sale to repay certain credit facilities of Centro Retail Trust and CAWF."
Yesterday, a Centro spokesman declined to comment on the details of the potential transaction, saying it had not been finalised. Its lead real estate advisor JLL's Simon Rooney, was not available for comment.
The 19,279 square metre Southport centre is about 80 kilometres south of Brisbane and is anchored by a discount department store and two supermarkets..
The 24-year-old centre was extended in 2005 to add an Aldi supermarket.
At $75 million, the sale of Southport was exactly in line with the most recent book valuation provided by the company last year, equating to a yield of about 6.25 per cent.
Private Gold Coast-based-developer Norm Rix said yesterday he had expressed interest in buying Southport last week but was not given the opportunity to bid and was told yesterday the centre had been sold by Centro.
Mr Rix's company, Rix Developments, owns substantial land and property assets in and around the Gold Coast region and was believed to have been a cash buyer for Southport.
"Whether I'd pay that price or not I don't know. However, I was never given the opportunity to even investigate the matter further. Perhaps I would've paid more.
"Apparently, there's a bit of cherry-picking going on to those in the know. I believe my money is as good as anybody's and I was never given the opportunity.
The property industry is awash with rumours about Centro's sell-down and there was speculation yesterday that the Nerang River Plaza, worth more than $50 million, might also be close to changing hands.
While 100 per cent interests in some smaller centres are being offered, Centro is believed to be offering a scaled-down version of the CAWF portfolio to institutional and offsore investors.
The scaled-down portfolio comprises half a dozen assets worth more than $1 billion, being offered as half-interests subject to continuing Centro management rights.
One industry source said Centro faced a difficult choice: selling off the best assets made a portfolio sale less likely, while market conditions made a sale of lesser assets almost impossible.
The source said Centro Galleria in Perth, The Glen in Melbourne and Centro Mandurah in Western Australia were "the ones everyone wants", and had the best growth profiles.
But recent reports indicated those centres had been withdrawn from sale.
The rest of the CAWF portfolio represented second, third or fourth-tier assets, the source said.
"We're in a tough market. We're not going to do ourselves or any investors any favours by paying book value.
"It's a different story on the quality properties, but if you go and look at some of the real estate, it hasn't been that well managed," he said.
Property analysts said the price for Southport was encouraging for the sector and provided further evidence of the resilience in the global market.
Shopping Spree
Centro Australia Wholesale Fund Portfolio
Centro Galleria - Valued at $585m
[GLA: 72,484m2; Owned 50% with CER]
Centro Bankstown - Valued at $580m
[GLA: 80,999m2; Owned 50% with CMCS 28]
Centro The Glen - Valued at $413.80m
[GLA: 58,395m2; Owned 50% with CER]
Centro Colonnades - Valued at $370m
[GLA: 64,557m2; Owned 50% with CER]
Centro Roselands - Valued at $350m
[GLA: 61,679m2; Owned 50% with CMCS 21]
Centro Toombul - Valued at $270m
[GLA: 48,468m2; Owned 50% with CER]
Centro Mandurah - Valued at $233.60m
[GLA: 39,564m2; Owned 50% with CER]
Centro Karingal - Valued at $214m
[GLA: 41,335m2; Owned 50% with CER]
Centro Warriewood - Valued at $150m
[GLA: 22,155m2; Owned 50% with CER]
Centro Arndale - Valued at $151,60m
[GLA: 40,186m2; Owned 50% with CMCS 33]
Centro Cranbourne - Valued at $136.20m
[GLA: 33,872m2; Owned 50% with CER]
Centro Warwick - Valued at $136m
[GLA: 30,202m2; Owned 50% with CER]
Centro Mildura - Valued at $110.70m
[GLA: 19,695m2; Owned 50% with CER]
Centro Tweed - Valued at $110.80m
[GLA: 18,653m2; Owned 50% with CER]
Centro Box Hill South - Valued at $107.40m
[GLA: 23,753m2; Owned 50% with CER]
Centro Taigum - Valued at $90.80m
[GLA: 22,122m2; Owned 50% with CER]
Centro Box Hill North (Whitehorse) - Valued at $78.80m
[GLA: 14,202m2; Owned 50% with CER]
Centro Lavington - Valued at $76.60m
[GLA: 19,155m2; Owned 50% with CER]
Centro Southport - Valued at $75m
[GLA: 19,299m2; Owned 50% with CER]
Centro Karratha - Valued at $72.20m
[GLA: 23,601m2; Owned 50% with CMCS 25]
Centro Goulburn - Valued at $70m
[GLA: 13,917m2; Owned 50% with CER]
Centro Springwood - Valued at $63m
[GLA: 15,490m2; Owned 50% with CER]
Centro Mornington - Valued at $62.58m
[GLA: 11,669m2; Owned 50% with CER]
Centro Whitsunday - Valued at $60.60m
[GLA: 21,723m2; Owned 50% with CER]
Centro Halls Head - Valued at $29.20m
[GLA: 6,037m2; Owned 50% with CER]
Note: The above does not include Centro Tuggeranong, Victoria Gardens or Hervey Bay which are held in joint ventures.
[Source: Centro]
Ends. (Phew; just as well it's first thing in the morning crew, otherwise this might have taken me hours to type out - lol)
-
Source: The Australian Financial Review newspaper [Page 56 - Property]
Wednesday 14 May 2008
Centro to sell Southport mall for $75m
Mathew Dunckley and Paddy Manning
Key Points
The sale price is in line with the most recent book valuation.
Developer Norm Rix says his bid was knocked back last week.
Other properties on Centro's books are seen as more desirable.
Analysts said the price paid was encouraging for the sector.
The break-up of Centro Property Group's Australian shopping centre portfolio has begun in earnest with the disposal of Centro Southport on the Gold Coast for about $75 million.
The sale of the Southport, owned 50-50 by the Centro Retail Trust and the Centro Australian Wholesale Fund (CAWF), was mentioned in a lengthy disclosure document posted with the US Securities and Exchange Commission overnight about the group's recent debt-extension arrangements.
"Management of Centro has received an offer for the purchase of Southport Centre for approximately $75 million," the document said.
"Centro now desires to enter into an agreement of sale with a potential buyer ... and to apply the proceeds of such sale to repay certain credit facilities of Centro Retail Trust and CAWF."
Yesterday, a Centro spokesman declined to comment on the details of the potential transaction, saying it had not been finalised. Its lead real estate advisor JLL's Simon Rooney, was not available for comment.
The 19,279 square metre Southport centre is about 80 kilometres south of Brisbane and is anchored by a discount department store and two supermarkets..
The 24-year-old centre was extended in 2005 to add an Aldi supermarket.
At $75 million, the sale of Southport was exactly in line with the most recent book valuation provided by the company last year, equating to a yield of about 6.25 per cent.
Private Gold Coast-based-developer Norm Rix said yesterday he had expressed interest in buying Southport last week but was not given the opportunity to bid and was told yesterday the centre had been sold by Centro.
Mr Rix's company, Rix Developments, owns substantial land and property assets in and around the Gold Coast region and was believed to have been a cash buyer for Southport.
"Whether I'd pay that price or not I don't know. However, I was never given the opportunity to even investigate the matter further. Perhaps I would've paid more.
"Apparently, there's a bit of cherry-picking going on to those in the know. I believe my money is as good as anybody's and I was never given the opportunity.
The property industry is awash with rumours about Centro's sell-down and there was speculation yesterday that the Nerang River Plaza, worth more than $50 million, might also be close to changing hands.
While 100 per cent interests in some smaller centres are being offered, Centro is believed to be offering a scaled-down version of the CAWF portfolio to institutional and offsore investors.
The scaled-down portfolio comprises half a dozen assets worth more than $1 billion, being offered as half-interests subject to continuing Centro management rights.
One industry source said Centro faced a difficult choice: selling off the best assets made a portfolio sale less likely, while market conditions made a sale of lesser assets almost impossible.
The source said Centro Galleria in Perth, The Glen in Melbourne and Centro Mandurah in Western Australia were "the ones everyone wants", and had the best growth profiles.
But recent reports indicated those centres had been withdrawn from sale.
The rest of the CAWF portfolio represented second, third or fourth-tier assets, the source said.
"We're in a tough market. We're not going to do ourselves or any investors any favours by paying book value.
"It's a different story on the quality properties, but if you go and look at some of the real estate, it hasn't been that well managed," he said.
Property analysts said the price for Southport was encouraging for the sector and provided further evidence of the resilience in the global market.
Shopping Spree
Centro Australia Wholesale Fund Portfolio
Centro Galleria - Valued at $585m
[GLA: 72,484m2; Owned 50% with CER]
Centro Bankstown - Valued at $580m
[GLA: 80,999m2; Owned 50% with CMCS 28]
Centro The Glen - Valued at $413.80m
[GLA: 58,395m2; Owned 50% with CER]
Centro Colonnades - Valued at $370m
[GLA: 64,557m2; Owned 50% with CER]
Centro Roselands - Valued at $350m
[GLA: 61,679m2; Owned 50% with CMCS 21]
Centro Toombul - Valued at $270m
[GLA: 48,468m2; Owned 50% with CER]
Centro Mandurah - Valued at $233.60m
[GLA: 39,564m2; Owned 50% with CER]
Centro Karingal - Valued at $214m
[GLA: 41,335m2; Owned 50% with CER]
Centro Warriewood - Valued at $150m
[GLA: 22,155m2; Owned 50% with CER]
Centro Arndale - Valued at $151,60m
[GLA: 40,186m2; Owned 50% with CMCS 33]
Centro Cranbourne - Valued at $136.20m
[GLA: 33,872m2; Owned 50% with CER]
Centro Warwick - Valued at $136m
[GLA: 30,202m2; Owned 50% with CER]
Centro Mildura - Valued at $110.70m
[GLA: 19,695m2; Owned 50% with CER]
Centro Tweed - Valued at $110.80m
[GLA: 18,653m2; Owned 50% with CER]
Centro Box Hill South - Valued at $107.40m
[GLA: 23,753m2; Owned 50% with CER]
Centro Taigum - Valued at $90.80m
[GLA: 22,122m2; Owned 50% with CER]
Centro Box Hill North (Whitehorse) - Valued at $78.80m
[GLA: 14,202m2; Owned 50% with CER]
Centro Lavington - Valued at $76.60m
[GLA: 19,155m2; Owned 50% with CER]
Centro Southport - Valued at $75m
[GLA: 19,299m2; Owned 50% with CER]
Centro Karratha - Valued at $72.20m
[GLA: 23,601m2; Owned 50% with CMCS 25]
Centro Goulburn - Valued at $70m
[GLA: 13,917m2; Owned 50% with CER]
Centro Springwood - Valued at $63m
[GLA: 15,490m2; Owned 50% with CER]
Centro Mornington - Valued at $62.58m
[GLA: 11,669m2; Owned 50% with CER]
Centro Whitsunday - Valued at $60.60m
[GLA: 21,723m2; Owned 50% with CER]
Centro Halls Head - Valued at $29.20m
[GLA: 6,037m2; Owned 50% with CER]
Note: The above does not include Centro Tuggeranong, Victoria Gardens or Hervey Bay which are held in joint ventures.
[Source: Centro]
Ends. (Phew; just as well it's first thing in the morning crew, otherwise this might have taken me hours to type out - lol)
If sales of property can be made at reasonable prices AND CNP keep management rights then there will be good value left for CNP holders. The management rights are where the income comes from. If a couple of sales can be made like this I can see my 60c SP following quickly behind those sales. That's my opinion.
- Joined
- 27 March 2008
- Posts
- 15
- Reactions
- 0
Has anyone got the guess why the SP is going on falling since last 4 days.... I thought it would stop around 0.38 but today it reached a new low of 0.34 after along time.... Moreover there are no news or announcement then why is the SP constanly falling?????
CER isnt as volatile as CNP.
CER isnt as volatile as CNP.
Probably because of staff resignations...afr article today. They have had a week of bad news with law suit,analysts' poor review of the extension,and now this,not to mention the short sellers magnifying all this...hopefully they'll recover ground when they make a decision on CAF offer and other(bigger) asset sales are annouced.
- Joined
- 27 March 2008
- Posts
- 15
- Reactions
- 0
Today was a good day for CNP. Initially it went 1.5 cents down but at the end of the day gained 2.5 cents from previous closing. I think the day traders have nothing to sell now. The one remaining in the league are the real investor with a long term investment strategy. After 30th may the SP might catch some pace and reach towards 0.50 and above. This is just my personal feeling. I think in coming days they might make some big and price sensitive announcement which will see the SP rising.
- Joined
- 1 January 2008
- Posts
- 123
- Reactions
- 0
Of course you would with a name like "cnpwellwisher" and only three posts.
Does your cousin, nslwellwisher, got any remarks on NSL?
Really...
- Joined
- 11 March 2008
- Posts
- 65
- Reactions
- 0
Birdster,
You sound a bit sarcastic.
I think CNPwellwisher has just made a fair comment/opinion on his/her expectation of the CNP share price. There is nothing wrong with that.
I bet most people here, especially those that have incurred losses on this stock would hope sp to go up, which is a reasonable expectation. This is given
(1). the fact of the sound fundamentals of the business (evidenced by the not too bad US results);
(2). the confidence in the new CEO;
(3) the banks (mostly unsecured) are in the same boat as shareholders;i.e. the May 30 deadline is more likely than not just a time to finalise legal documentation, no big drama is expected.
(4). the recent property sale at above book value prices and the strong interests from bidders; and
(5). the fact that the shares have been dramatically oversold lately by daytraders.
Such solid fundamentals/factors would well outweigh all the short-term negativities /noises (staff resignations, class action litigation/May 27 hearing).
I guess we will just have to be patient, and be more alert to the new developments over the next two weeks at least.
I do hope that people on the forum could more vigorously keep each other informed/updated of any new development, or any observations in major sp movements.
IMO, the forum is a place for people to exchange ideas/opinions, and share information that are beneficial to the members not just financially but also intellectually.
The above is just my view. I have no intention to hurt anyone here.
Thank you very much.
L
You sound a bit sarcastic.
I think CNPwellwisher has just made a fair comment/opinion on his/her expectation of the CNP share price. There is nothing wrong with that.
I bet most people here, especially those that have incurred losses on this stock would hope sp to go up, which is a reasonable expectation. This is given
(1). the fact of the sound fundamentals of the business (evidenced by the not too bad US results);
(2). the confidence in the new CEO;
(3) the banks (mostly unsecured) are in the same boat as shareholders;i.e. the May 30 deadline is more likely than not just a time to finalise legal documentation, no big drama is expected.
(4). the recent property sale at above book value prices and the strong interests from bidders; and
(5). the fact that the shares have been dramatically oversold lately by daytraders.
Such solid fundamentals/factors would well outweigh all the short-term negativities /noises (staff resignations, class action litigation/May 27 hearing).
I guess we will just have to be patient, and be more alert to the new developments over the next two weeks at least.
I do hope that people on the forum could more vigorously keep each other informed/updated of any new development, or any observations in major sp movements.
IMO, the forum is a place for people to exchange ideas/opinions, and share information that are beneficial to the members not just financially but also intellectually.
The above is just my view. I have no intention to hurt anyone here.
Thank you very much.
L
- Joined
- 1 January 2008
- Posts
- 123
- Reactions
- 0
You're right Lav,
it was a bit sarcastic...apols to cnpwellwisher.
I was thinking and typing two seperate things!
Good food and wine can do that you know.
What I was meaning to ask is why 30th May was when the price is to go .50 cents. (Other than "personal feeling") The deadline does not seem to be a price sensitive issue. Selling off of RE is though, but in a possible negative way.
So one question is; Why do you think 30th May is worth +13.5 cents?
Also, predicting an ann in the near future will see the SP rise is to what thought? Or is it well wishing?
Thanks for the reply.
Birdster
it was a bit sarcastic...apols to cnpwellwisher.
I was thinking and typing two seperate things!
Good food and wine can do that you know.
What I was meaning to ask is why 30th May was when the price is to go .50 cents. (Other than "personal feeling") The deadline does not seem to be a price sensitive issue. Selling off of RE is though, but in a possible negative way.
So one question is; Why do you think 30th May is worth +13.5 cents?
Also, predicting an ann in the near future will see the SP rise is to what thought? Or is it well wishing?
Thanks for the reply.
Birdster
- Joined
- 30 January 2006
- Posts
- 215
- Reactions
- 0
Congratulations Lavender ..very good post
You have touched on all the important considerations for CNP holders.
I share your view that the next few weeks should be good for the longer term investor.
I have a large parcel of CNP shares so am clearly biassed.
I can see the light at the end of the tunnel and IT IS NOT A TRAIN ( though the media would have it otherwise)
GL to all holders, looking forward to next week.
You have touched on all the important considerations for CNP holders.
I share your view that the next few weeks should be good for the longer term investor.
I have a large parcel of CNP shares so am clearly biassed.
I can see the light at the end of the tunnel and IT IS NOT A TRAIN ( though the media would have it otherwise)
GL to all holders, looking forward to next week.
I have been trading shares for just 2 month. My background is accounting and business. Personally, I dont like gamble. I believe trading share is all about valuation. At the beginning, I bought major banks shares at their recent lowest in middle March. But after I heard centro and read through all posts in this forum, I sold out all my banks and buy up to 1.6 million cnp shares around 30c cost. The reasons are same as mentioned above. I prepared to take the loss if there is a fire sale. I dont think I will be left zero in the end (scared though during the price down to 26c). After cnp share recovered to 50c level, I trade 20% of my cnp daily to take advantage of the price fluctuation. Before the recent ann, I sold all my cnp at around 47.5 c, not a maximum of profit, but still feel lucky not hold too much for too long.
Really thanks for people provide valuable info on this forum, I even check this forum before I check everyday news. I buy some cnp and cer again after the ann, and feel cer is better for short term hold. Although I dont feel like to buy that much cnps as before, I still fully trust centro is undervalued. All the troubles now goes to the banks. I reduce my centro holdings because I cant expect any dividend distribution in the near future.
Really thanks for people provide valuable info on this forum, I even check this forum before I check everyday news. I buy some cnp and cer again after the ann, and feel cer is better for short term hold. Although I dont feel like to buy that much cnps as before, I still fully trust centro is undervalued. All the troubles now goes to the banks. I reduce my centro holdings because I cant expect any dividend distribution in the near future.
