Centro surprised by market gain
CENTRO Properties Group securities gained as much as 46 per cent this week, but the debt-laden shopping centre owner says it is unaware of any reasons for the move.
Centro Properties securities began the week at 5.4 cents and had risen to 7.9 cents before entering a trading halt on Thursday morning.
Despite speculation an announcement was to be made by the company, Centro yesterday told the Australian Securities Exchange it was unaware of any reason for the rise, and increased volume of trade.
It said it anticipated its underlying profit for the year to June 30 to be lower than the previous year by substantially more than 15 per cent.
But that was not material to the market price, it said, due to its recently announced debt refinancing and restructure plans. The group is selling its US assets, and has proposed a cancellation of its senior debt and amalgamation of all of its funds’ assets into one portfolio.
The shopping centre owner is one of Australia’s highest profile casualties of the global financial crisis.