Centro gains breathing space

Centro Property Group has gained some breathing space, announcing today that its financiers in both Australia and the US have further extended finance arrangements.

In an announcement to the Australian Securities Exchange this morning, Centro said that facilities of approximately US$1.3 billion associated with Centro’s US joint venture with Centro Retail Trust (CER) had been extended until September 30, with extension beyond April 30 being subject to a similar arrangement being agreed under the Australian extension arrangements.

It said additional development funding of US$80 million had also been provided to the Centro/CER US joint venture.

The company said facilities of $2.3 billion under the Australian extension arrangements had been extended until April 30 and that US Private Placement Noteholders who were collectively owed US$450 million had agreed to continue to act in accordance with an extension arrangement similar to the Australian extension arrangements.

The announcement said an extension beyond April 30 of the Australian facilities and US Private Placement notes would be negotiated once the recapitalisation process was further advanced.

Centro chief executive Glenn Rufrano said the group appreciated the co-operation of its lenders, which would allow sufficient time to complete the review of recapitalisation options.

He said that until the outcome of the recapitalisation was known, Centro considered it appropriate to suspend guidance of its forecast operating distributable profit per security for financial year, 2008.