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Centro Posts $299M Loss

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Bleak news on the Centro front. The company has posted a huge quarterly loss. Centro says its U.S. properties have lost 8.8 percent of its value. It also said it may not be able to continue as a "going concern" given all the problems it is facing.

Centro Properties Group, the Australian owner of more than 650 U.S. malls, said the unit that manages U.S. assets acquired last year for $5.2 billion posted a second-quarter loss after writing down the value of the business.

Centro NP had a net loss of $299 million for the three months ended June 30, the Melbourne-based parent said today in a statement to the Australian stock exchange. The unit booked a $95 million charge for writing down properties and a $173.5 million impairment in the company's goodwill and the value of its property management business.

"There is substantial doubt about the company's ability to continue as a going concern given that the company's liquidity is subject to, among other things, its ability to negotiate extensions of credit facilities,'' Centro NP said in a statement filed yesterday with the U.S. Securities and Exchange Commission.

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Elaine Misonzhnik

Senior associate editor Elaine Misonzhnik has been writing for National Real Estate Investor since June 2006 and has covered commercial real estate for more than 12 years. She first became...
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