CNP - Centro Properties Group

[propergeez]

The figure of $1.2B has been bandied about, however this is for the whole of the fund of which CNP owns 25%. So CNP will receive $300M - not peanuts but not $1.2B.

From Centro 2007 report:

"Centro prefers co-ownership of its retail property assets through a
two tier ownership structure where Centro effectively owns 50% of
a diversifi ed fund (e.g. Direct Property Fund, Direct Property Fund
International) which in turn owns 50% of an ownership fund (e.g.
Centro MCS Syndicates, Listed Funds, Wholesale Funds) which own
the underlying retail property asset fi nanced by both equity and debt.
Therefore through the two tier structure, Centro has an effective 25%
equity ownership in the underlying retail property assets. Graham Terry
Chief Operating Officer"

"In November 2006, Centro established two new retail property
wholesale funds – the Centro Australia Wholesale Fund (‘CAWF’)
and the Centro America Fund (‘CAF’). In line with Centro’s business
model, Centro has co-invested in these funds through interests
held by the DPF and DPFI. CAWF was the result of the spin-off by
Centro of $2.5 billion of directly owned Australian shopping centres
and CAF is a portfolio of A$1.1 billion of US properties."

Whether they will be able to continue management of CAF and earn some money from that is another question for the new owners, perhaps CNP have put in a caveat to the new owners stating CNP management for 2 years?

 

[gensis1]

Retaining management is probably why negoiations were on going...and overall taking longer than normal.. and i think cnp/cer are 50/50 ownership according to reports.

 

[gensis1]

The reports are saying 95% of caf is being sold for $1.2bl($1.16bl/us)..this is probably to retain management rights through a 5% stake..

 

[MU002]

Looks day traders back again into centro... acturally, it's not bad for us to follow the trend to make some profit as well. if you have faith in centro's business, buy some when the price is low, and just hold, you will see the profit margin is much bigger than trading other shares. it's just because the minimum share price interim is 0.5c, makes every price change a big percentage move. thanks again to the low price. I think we dont need to worry too much about US propery price. the slump is largely in the residential property market, right? What's centro's assets? shopping centers. the valuation is based on the rental income plus the whole property market premium. i think the case is, when property market turning down, it just makes commercial property more attactive than residential ones. and among commercial properties, shopping centers should be more popular than offices when the economy is weak, like the situation in US today. that is why banks still be willing to hold centro's assets rather than sell it all together.

 

[oldblue]

Hi MU
All true, up to a point.
Don't overlook the fact that most of these shopping centre rentals have an element of " return on turnover" in them. A sustained retail downturn will show up sooner or later in the returns to owners.

 

[nioka]

Trading halt till Monday. Now comes the moment of truth. Here's hoping for good news. ???????? Any ideas?"

 

[hsv2001]

I really wouldn't know which way to think about this, I don't know whether i'm glad i got out or not. In one sense i'd be worried that a trading halt was called during a class action claim, however today someone has exercised 500000 options at $9 each!!! now that to me, unless they are very unlucky, seems that someone knows something everyone else doesn't. Oh besides the various $1.20 options that were also exercised.

Here's hoping for all you holders, maybe i'll get back in to CNP.

Good luck
Marc

 

[nioka]

I really wouldn't know which way to think about this, I don't know whether i'm glad i got out or not. In one sense i'd be worried that a trading halt was called during a class action claim, however today someone has exercised 500000 options at $9 each!!! now that to me, unless they are very unlucky, seems that someone knows something everyone else doesn't. Oh besides the various $1.20 options that were also exercised.

Here's hoping for all you holders, maybe i'll get back in to CNP.

Good luck
Marc

Excersing options at those prices doesn't seem realistic. I couldn't find any thing on that event. Where is it recorded?. It would be an expensive way to buy votes, that is often the reason for the excersing of options before some announcement requiring a vote by shareholders.

 

[hsv2001]

it is in CNP market depth this morning,

Last 10 Trades
Time Price Quantity
07:07:37 AM 9.000 500,000
07:07:37 AM 1.200 6,000
07:07:37 AM 1.200 27,000
07:07:37 AM 1.200 3,000
07:07:37 AM 1.200 1,000
07:07:37 AM 1.000 5,000

I may be wrong, but that's how i read it.

 

[nioka]

it is in CNP market depth this morning,

Last 10 Trades
Time Price Quantity
07:07:37 AM 9.000 500,000
07:07:37 AM 1.200 6,000
07:07:37 AM 1.200 27,000
07:07:37 AM 1.200 3,000
07:07:37 AM 1.200 1,000
07:07:37 AM 1.000 5,000

I may be wrong, but that's how i read it.

As I see it that looks like forced completion of forward contracts. Looks like some people are still losing money. It isn't someone exercising options.

 

[tulasi74]

It was some smart person who bought put options at exercise price of 9.00. That is option to sell. If they think its going to go higher from current price, then now is the best time to exercise it.

Tulasi

 

[gensis1]

Wouldn't worry about earlier trades...it won't have any effect on opening sp...but an ann. with asset sales definitely will have a greater effect on sp than just the finalised agreement..

 

[tulasi74]

Does anyone have any new info on Centro? Cannot even find the company's request for trading halt. Normally that is available on Webiress. I am just trying to find out if anyone know when an announcement is likely to be made and when we could expect the shares to resume trading.

Tulaisi

 

[nioka]

Does anyone have any new info on Centro? Cannot even find the company's request for trading halt. Normally that is available on Webiress. I am just trying to find out if anyone know when an announcement is likely to be made and when we could expect the shares to resume trading.

Tulaisi

Best site for up to date announcements is the ASX site. Centro will reopen for trading Tuesday morning or after the release of the announcement whichever comes first.

 

[gensis1]

Trading halt is until tuesday or until ann. is made from asx...(no further info is given in the letter)

 

[tulasi74]

Just checked Etrade website for company announcements by Centro. At 2.57pm there is an amended request for trading halt. This is the letter by the company and it states that announcement will be made before trading opens on Monday. I guess this means announcement could be after market close today or early on Monday morning.

This just looks like its going to be another interim extension on the conditions set out on May 30. The announcement made on May 8th did state that if the conditions are not met, the further extensions may be terminated. Not will. So another extension on the May 30 deadline could be on the cards.

Wonder when they will be able to just go on with business as usual without all these extensions and conditions.

Tulasi

 

[sonicwind]

doesn't look good to me, positive news shouldn't take this long to announce.

unless they have got a few news to release in one go...

 

[tulasi74]

I agree that positive news shouldn't take that long to announce. If past history is any indication, it could be that its going down to the wire. Some media reports state that there might be dispute amongst the banks and WestLB might once again be a sticking point.

Since deadline was close of business today to meet the conditions and CNP request for trading halt stated that the announcement might be made before trading commences on Monday, I had expected an announcement to be made after COB today. But I have kind of given up now unless they do what they did on Feb 15th and post it on the website very late at night.

Some media reports also state that US Banks loans are secured and they are seeking repayment by September 30 when earlier media reports said that on September 30 CNP would need to renegotiate with them to extend those debts to Dec 15.

Bollinger bands are telling me either 49 cents or 67 cents on the upside but if its negative, possible retest of all time lows of 23 cents. This is just my view and please DYOR.

 

[tulasi74]

The latest share price for CNP and CER on www.centro.com.au is 0.00. Does anyone recall if this was the case the last time there was a trading halt?

 

[Birdster]

The latest share price for CNP and CER on www.centro.com.au is 0.00. Does anyone recall if this was the case the last time there was a trading halt?

That is scary! I do not hold, but feel for the ones that do! It MUST be some sort of glitch. The company has assets, but the company has debts. End of day, must be better than ~ .37 cents even on a fire sale of al assets.

Birdster.