Centro shopping center sale attracts $13.3 billion worth of bids

Buyer interest for Centro Property Group’s shopping malls has garnered US$13.3 billion worth of bids as the first round ended last week.

The property is the country’s largest sale so far as corporate bidders from Singapore, the United States, Australia and Canada expressed interest.
The company will be selling its Australian and U.S. property assets with the Australian retail assets of particular interest to buyers since the industry is projected to grow in the coming years. Centro will use the proceeds of the sale to pay off debt worth $18.4 billion.

A Centro spokesman said in a statement that the company will formalize closing of the bids this week although analysts say that the first-round bids are still non-binding, and the selection process is expected to continue next year.

“This is the only owner of retail that is distressed. It definitely signals that there is, out of the various sectors, strong appetite for retail assets," Adam Learmonth, director for property investment advisory firm Anvil Capital told Reuters. "Even despite the distressed nature of Centro, we are probably unlikely to see much softening in the pricing."

Currently, the company has a shopping mall portfolio worth $18.6 billion located in the United States, Australia and New Zealand; specializing in retail property ownership and management services. It is the fifth-largest retail property owner in the United States and also the the second largest retail property owner in Australia.