TWENTY four hours after the opening of its so-called 'virtual data room' to potential buyers, Centro's portfolio has garnered a mix reaction and potentially a handful of 'virtual offers'.
Yesterday, PropertyReview was told from those close to the bidding process that the portfolio up for grabs has received a mixed reaction from potential bidders.
An insider, who did not wish to be named, told PropertyReview that there is a “price tension” between the Centro and the potential bidders.
According to the insider, whilst there is competition between the potential bidders for the properties, the parties are also mindful to grab the assets for “a bargain”.
On a positive note, another player said Centro has received firm bids for six properties in its Australian portfolio.
The insider said the six properties are Centro’s ‘standout’ and ‘prized assets’ and will likely achieve the ‘book value or higher’ for the group.
It is believed out of the six properties, two standout assets are the Galleria in
Meanwhile, at the other end of the portfolio, the insider said contrary to earlier speculation, Centro’s
Another insider agreed, adding the two prized assets of the portfolio are Galleria and Mandurah.
The insider said that apart from the two assets, the remainder of the portfolio have not spark significant interest.
“There was a lot of buzz before the data room was opened that it was a great portfolio, but after having a closer look – aside from the Galleria and Mandurah, the rest of the portfolio is your run of the mill.
“And they (Centro) are asking bidders to submit their bids inline with the book value or higher,” the insider concluded.
Centro is currently selling the assets held in the Centro America Fund and Centro Australia Wholesale Fund.
CAF comprises interests in 32 United States shopping centres valued at $1.2 billion and CAWF’s portfolio comprises interests in 28 Australian shopping centres valued $2.6 billion.
But it is believed Centro is marketing 24 properties in CAWF.
Centro’s spokesperson did not return calls from PropertyReview.
Centro Properties shares closed 5 cents higher to 65 cents yesterday, while its flagship fund Centro Retail Group closed 1 cent higher to 47 cents.
Australian Property Journal
