The Centro Properties Group, one of the world's biggest operators and owners of retail centres, is a partner for a $471 million bid from a subsidiary of Chicago, Illinois-based Inland American Real Estate Trust Inc.
Centro is based in Glen Waverley, a suburb of Melbourne in Australia, Victoria. The company covers the Australian Securities Exchange (ASX) (ASX). used cars
According to prepared declarations by both organisations, the Centro NP Residual Holding LLC, which is jointly owned by the Centro Properties Group (ASX: CNP) and the Centro Retail Trust, has sold a portion of its stakes in 25 shopping centers covering some 4.5 million square foot to Inland American CP Investment LLC.
Inland American also held the first rights to a part of the initial mortgage loan of the 25 homes.
In 13 states, the properties contain grocery and retail facilities in the neighbourhood. The average occupancy rate was 91 percent as of 30 September 2010.
The new Joint Venture has raised $310 million in ten-year loans from J.P. Morgan and Goldman Sachs according to the two firms participating in the deal. The loans are supported by properties of the joint venture.
The profits from the sale and payment of additional term loans for retail centers are used to repay all of the debt of the Centro NP, scheduled to expire on December 9, 2010.
The new joint venture agreement offers Inland American a significant ownership stake and a certain governance rights in the recapitalized portfolio, as well as a preferential capital position and a favored return.
"We believed that they were high-quality assets when we purchase the initial loan participation, and this new joint venture agreement confirms the notion," stated Michael Podboy, Vice President of Inland American Business Manager & Advisor Inc.
"We are pleased about Centro and about settling our previous involvement in a portion of the initial mortgage loan, since it was an excellent business transaction for us."
A good mix of national and regional retail tenants such as Wal-Mart, Publix, Kroger, Best Buy, Kohl's, Staples, Bath & Beyond and T.J. Maxx are highly traffic-powered shopping centres."
Centro is the United States' fifth-biggest retail owner/manager, Australia's second-largest and Wesfarmers and Woolworths's largest retailer.
Centro owns, according to its website, 682 properties in the United States and 128 in Australia and New Zealand.
The United States and Australia are the Chinese property giant.
The Greenland Group, headquartered in Shanghai and one of China's biggest developers, is stepping up its investment in the U.S. and Australia abroad.
The Wall Street Journal reports that the firm wants to invest in a West Coast project and is contemplating a residential project in Melbourne as well.
As previously reported, Brookfield Asset Management has purchased a $497 million residential and hotel property in Sydney.
President Zhang Yuliang said to reporters, "There are many Chinese individuals in sectors where we are interested."
According to him, financing from the Chinese and Australian banks back the acquisition in Sydney.
The company is hoping to take advantage of the increasing number of immigrants from China and students studying abroad.
Mr. Zhang said government action to calm down the market is essential since the Journal states that home prices are "excessive."
Mr. Zhang told reporters that "homes must be charged and must live with them." "The developers of properties will need to adapt and modify their products to appeal to house purchasers for the first time," said the report.