Centro Properties Group

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Image:Centro Properties Group Logo.PNG

Centro Properties Group Limited (ASX: CNP) is an Australian company (also known as an Australian Stock Exchange listed stapled entity) that is a property investor and manager mainly in shopping centres in Australia, New Zealand and the United States. The entity combines Centro Properties Limited and Centro Property Trust. Eighty two per cent of its net income comes from retail property ownership. As at March 2006, it has a $5.5 billion market capitalisation which makes it one of the Top 100 companies listed on the Australian Stock Exchange. In 1993, it had a market capitalisation of just over $90 million. Its operating profit in the FY ending June 30 2005 was $253.4 million.

Centro is the ninth largest owner manager of shopping centres in the United States and the second largest owner manager in Australia. Centro is the major landlord to Australia's two largest retailers Coles and Woolworths.

The company is facing financial difficulties due to fallout from the subprime mortgage financial crisis.

Contents

[edit] Stock Return Information

Until the events of December 2007, Centro was considered one of the best performing property groups listed on the Australian Stock Exchange.

As at June 30 2005, Centro owned and managed 224 properties with total funds under management of $9.1 billion. It is the leading arranger of property syndicates in Australia, which enable investors to invest in property assets that are managed by Centro. In 2005 alone it raised $175 million of equity in three new syndicates over a capital raising period on average just over two months. It has 17,000 separate investors including the powerful building and construction superannuation fund Cbus . The company receives income for managing the assets of managed funds and success fees for the management of syndicates. It describes its approach as "cemented co-investment." It generally invests its own equity (between 25% and 50%) in the property managed funds it administers which it says ensures an alignment of its interests with those of co-investors. Eighteen per cent of its net income is generated by profits of funds management activities of this kind. It has been a popular pursuit for large property development and investment businesses to pursue what are seen as lowest risk income of this kind rather the more speculative but larger potential profits associated with development.

[edit] Properties

Centro is Australia's second largest shopping centre owner.[1] Its largest properties are Centro Galleria in Perth, Centro Bankstown in Sydney and Centro The Glen in Melbourne. Most of its other assets are regionally based shopping centres, most often anchored by major lease deals with Woolworths Limited with which it has a strong relationship. It has over five hundred staff in Australia.

In the United States, Centro is the 9th largest owner and manager of retail space with $10 billion property under management. Its US operations are based primarily in Philadelphia, Pennsylvania and Los Angeles, California. Centro has over 250 staff in the US concerned with acquisition, new development, marketing and leasing.

The company's Chief Executive Officer is Andrew Scott, a former Coles Myer Property Managing Director. The Chief Operating Officer Graham Terry is also from Coles Myer Property and the Chief Financial Officer Romano Nenna is formerly the Head of Tax at Coles Myer.

Centro Properties is a widely held company with significant investment from Australian financial institutions.

[edit] Locations

This list is incomplete; you can help by expanding it.

[edit] Australia

[edit] Australian Capital Territory

[edit] New South Wales

Image:Bankstown Centro Shopping Centre.JPG
Centro Bankstown
Image:Roselands Centro 1.JPG
Centro Roselands

[edit] Queensland

[edit] South Australia

Image:Centro colonnades entrance.jpg
Centro Colonnades, Noarlunga Centre

[edit] Tasmania

  • Centro Burnie
  • Centro Cat & Fiddle Arcade
  • Centro Elizabeth Plaza
  • Centro Glenorchy
  • Centro Launceston
  • Centro Meadow Mews
  • Centro New Town

[edit] Victoria

Image:Centro Oakleigh.jpg
Centro Oakleigh

[edit] Western Australia

Image:Centro Flinders sign.jpg
Centro Flinders, Yokine

[edit] Financial difficulties

On Monday 17 December 2007, Centro announced that it has not been able to roll over AUD$1.3 billion in short term loans that expire on 15 February 2008. This is a consequence of the subprime mortgage meltdown in the United States.[2] While Centro also announced they would be solvent until at least February 2008, shares in the group closed at AUD$1.36, representing a 77% fall on Thursday's high.[3] Applications and withdrawals have been suspended from Centro's Direct Property Fund (DPF) and the Centro Direct Property Fund International (DPFI).

[edit] References

  1. ^ AAP. "Centro shares continue plummet", Business, Sydney Morning Herald, 18 December 2007. Retrieved on 2007-12-19. 
  2. ^ Centro on the brink as shares plunge. The Age. Retrieved on 2007-12-17.
  3. ^ Centro falls 77% on profit downgrade. The Australian. Retrieved on 2007-12-17.

[edit] See also

[edit] External links

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