Centro Retail and Centro Retail Trust (CER) have been given the okay by the NSW Supreme Court for its merger and restructure plan.
This will see a fresh start for the debt-ridden company.
Prior to the GFC, Centro had borrowed heavily to finance its expansion, which has since left the company in a $3 billion plus debt for the last four years.
Additionally, the deal was delayed by the company’s former auditor PricewaterhouseCoopers that threatened to take legal action against the merge but had decided to withdraw its decision.
As a result of the approval CER and the other Centro Properties managed funds including Centro Australia Wholesale Fund (CAWF) and Centro Direct Property Fund (DPF) have created a new listed Australian retail property trust, Centro Retail Australia (CRF).
Peter Day, CER chairman, said the company is pleased with the outcome.
“This is the final approval required for Aggregation and now, after an extended period of uncertainty, we look forward to the formation of Centro Retail Australia,” he said.
“The CER directors believe Aggregation is a very positive outcome for CER securityholders and that Centro Retail Australia represents an attractive investment proposition with strong, stable future prospects.”