Centro Property Group has significantly improved its liquidity position with the announcement today that it has entered into an agreement to sell 29 of the 31 properties in the Centro America Fund (CAF) to a private real estate investment adviser.
According to an announcement released on the Australian Securities Exchange today, the contract price from the sale of US$714 million represents a 10 per cent discount to previous book value.
Centro said it expected to use the net proceeds to pay down outstanding indebtedness.
Commenting on the transaction, Centro chief executive Glenn Rufrano said: “As we have previously advised, the sale of the CAF portfolio is a key step in providing liquidity to our balance sheet.”
