AT least four major shopping centres across Perth are poised for a change of ownership, including three of the Centro Properties Group's largest Western Australian assets.
AT least four major shopping centres across Perth are poised for a change of ownership, including three of the Centro Properties Group's largest Western Australian assets.
The sale of Centro Dianella is near completion, with the expression of interest finalised and exclusive consideration currently being given to one party.
Jones Lang LaSalle is handling the Centro sales and has kept the identity of Dianella's prospective buyer under wraps.
But there are unconfirmed reports that property funds management and advisory group EG Funds Management is carrying out due diligence on the property.
Sensitivities surrounding the deal have impeded sources from revealing a price tag, although rumours of a figure around $55 million are off the mark.
Centro Galleria in Morley, Perth's largest shopping outlet, and the company's shopping centres in Halls Head and Mandurah are shaping up as the next to change hands.
Centro continues to face mounting debts after booking an annual net loss of $2.06 billion for 2007/08. It is aiming to have repaid the existing debt of about $5 billion by December 15.
The company has already obtained three extensions from its lending institutions in the past six months and will be seeking another extension, according to Centro chairman Paul Chapman.
Officially, Centro will continue to pursue asset sales with a measured approach and only where pricing represents acceptable value for its investors.
"There was surplus land attached to the Dianella property which equated to extra value being added to the site, along with a hotel on the site as well," Jones Lang LaSalle director sales and investments Nigel Freshwater said.
Mr Freshwater said it would be interesting to see what Centro does next, considering the Centro Wholesale Fund is likely to sell its 50 per cent stake in each WA asset while Centro Retail Trust will retain the other half, leaving any investor with only a half share.
"This means they can't sell their assets with 100 per cent controlling interest," Mr Freshwater said.
"Parties can't get complete control for things such as future development and ongoing management of the property...[but] it could play a part in deciding any future purchases or investments."
"Centro Warwick and Centro Galleria are massive outlets worth hundreds of millions of dollars which means that a half share or 50 per cent share in one of these giant properties would be suitable to certain prospective investors," he said.
Property developer and funds manager GPT Group may also have found a buyer to pay more than $100 million for the Floreat Forum shopping centre, last valued at $127 million.
Retail assets in WA are generally tightly held and rarely come onto the market. Some of the major sales in the past year include Karrinyup Shopping Centre, bought by Westfield Group and Unisuper for $152.5 million and Currambine Market Place, bought by Blair Group and Ray White Invest for $52.4 million.
