Blackstone among suitors for Australia's Centro Properties
Debt-burdened Australian shopping mall owner Centro Properties Group is entertaining an acquisition bid from the Blackstone Group for its more than 700 Australian, New Zealand and US properties, with other PE majors also said to be eyeing the assets.
According to local and global reports, firms including Apollo Management, AMP Capital Investors Ltd., Oaktree Capital and the Singapore Government Investment Corp. (GIC) are among the additional potentials for the properties, though their participation could not be confirmed. While the size of bids have not been disclosed, Centro has estimated that its nearly 700 properties in the US are alone worth more than A$17 billion ($17.3 billion). Centro further claims that its 125 shopping centers in Australia have generated more than $10 billion in annual sales.
While its assets hold potential for return, Centro itself is saddled with A$18 billion ($18.3 billion) worth of debt, largely accrued two years ago when the company acquired its American properties for $27 billion. Elements including America's depressed economy that resulted in slowed spending have contributed to Centro's inability to regain revenue.
In addition to its shopping center properties, Centro is a real estate investment trust with $18.6 billion under management. Centro is listed on the Australian Securities Exchange.
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