Lend Lease offers cash bid to Centro prior to Centro-Blackstone deal, report says
Australian commercial property giant Centro Properties Group Ltd. has reportedly received a $4.96 billion cash offer from Lend Lease Group in February this year that would allow the latter to takeover Centro's Australian shopping complexes.
In a report published by the Financial Times on Friday, the offer was made prior to the more than $9 billion deal between Centro and US-based firm Blackstone Group revealed by the Australian firm in March.
The report also largely confirmed the swirling rumour of a deal between Centro and Lend Lease, which until in May was denied by both entities.
The assets sales would in turn will liquidate the property firms US portfolios that according to an estimate carried a Business Spectator story numbered to some 670 malls, with reported worth of $20 billion including the company's local assets.
The Financial Times said that two sources privy to the agreement sounded off the Lend Lease proposal, which apparently also enjoys funding support from Government of Singapore Investment Corp. and Canada Pension Plan Investment Board.
Lend Lease managing director Steve McCann has earlier declared that no sort of agreement between his company and Centro was being developed earlier this year, informing the company's shareholders late in May that "we are unaware of any other process," aside from the Centro-Blackstone development.
McCann also stressed then that "things evolved over time and our consortium of investors changed but our interest never did and still hasn't but they announced in the middle of March they have sold the U.S. business and they're recapitalizing the Australian business."
The report came out amidst Centro's ongoing discussions with its lenders that would consolidate its Australian assets that are currently beset by up to $9 billion of debt, mostly caused by the spirited investment initiatives made by the company shortly before the onset of the global financial crisis in 2008.
Experts view the latest maneuvering by Centro as a way for the firm to finally settle the debt crisis that has been dogging its operations for a couple of years now.