After months of revising its restructuring and recapitalisation options, Centro Properties Group has sold its US assets to BRE Retail Holdings, an affiliate of Blackstone Real Estate Partners.
The deal is worth approximately A$9.28 billion.
Centro chairman Paul Cooper described the move as a major milestone for Centro and its managed funds.
“The detailed and complex restructure analysis we have undertaken has finally come to fruition,” he said.
The company said it has also entered into discussions of amalgamating its respective Australia portfolios to create a listed fund owning a retail property portfolio of high quality Australian regional and sub-regional shopping centres.
It has also agreed with holders of approximately 73 per cent of Centro’s senior debt to progress a creditors scheme of arrangement to effect the cancellation of all Centro’s senior debt in consideration for substantially all Centro’s Australian assets.
On completion of the debt restructure, all Centro’s external senior debt would be
extinguished, and Centro would have no substantial assets other than a cash sum of up to $100 million.
Centro Group CEO and managing director Robert Tsenin said he believes these solutions are the best ones that can deliver “maximum value to all stakeholders”.
“While it will no longer be held for the benefit of Centro stapled securityholders, the potential amalgamation of the group’s Australian property and management interests could be a very attractive, stable and appropriately capitalised new fund,” he said.
“It would also enable the Amalgamated Fund to preserve its leading Australian property portfolio and syndicate and property management business.”
This follows the company's request to enter into a trading halt on Monday.