Centro shortlists Blackstone, Morgan Stanley and NRDC - reports

According to The Wall Street Journal, the deal could be worth $9.5 billion, and finalized bids must be submitted by February 24. The investor groups involved are Blackstone, which was rumored to be involved in the process when news of Centro's intention to sell its assets broke last month; as well as Morgan Stanley Real Estate together with global real estate investment firm Starwood Capital Group. Meanwhile, NRDC Equity, with Australian property financer and manager Lend Lease, may be looking to acquire Centro's full property portfolio, the report continued.

Last month, reports surfaced that a plethora of PE outfits including Apollo Management, AMP Capital Investors Ltd., Oaktree Capital and the Singapore Government Investment Corp. were among the suitors for the properties. Centro additionally owns 112 shopping mall properties in Australia and New Zealand, and while Centro had estimated that its 600 properties in the US are alone worth more than A$17 billion ($17.3 billion), the company is weighed with A$18 billion ($18.3 billion) worth of debt, largely accrued two years ago when the company acquired its American properties for $9 billion. Elements including America's depressed economy that resulted in slowed spending have contributed to Centro's inability to regain revenue. The sale of its assets is poised to reposition its balance sheet.

 

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• Topics
• Australasia
• The Blackstone Group