Centro have sold off about 85 percent of the company's market value over two days, leaving with a market capitalization today of just A$722 million.Group stock fell another 40 percent in trading today in Australia, closing at A80.5 cents. Investors
Macquarie Bank operates two entities that own assets in the U.S., Macquarie DDR and Macquarie Countrywide. Each of the two firms issued statements affirming the trusts' debt positions and portfolio performance to assuage investors that what happened at Centro might happen elsewhere.Overall, analysis coming out of the Australian market is that Centro's problems are unlikely to spread to other property trusts. Centro's problems, though, do illustrate the refinance risk in the market. As debts under more generous terms come up for refinancing, other companies will have some problems, but probably not on the scale of Centro.
The Sydney Morning Herald reported on prospects of other Australian firms buying Centro's assets. Meanwhile, The Australian said Centro might be forced to sell its U.S. portfolio for A$2 billion less than what it paid because of the change in the market.
Also, Australian banks have A$4 billion in exposure to Centro through various debt packages.
(For the original post on Centro, go here.)