This article is from the Australian Property Journal archive
CENTRO has kicked goals for the MCS 16 syndicate – in an attempt to shore up investor support and throw off Pelorus Property Group's crusade ahead of a meeting at March 30.
In addition to MCS 16, Pelorus has also launched bids of control of MCS 19 and MCS 11.
Yesterday, Centro MCS announced that it will pay a full December 2007 quarterly distribution to MCS 16 investors in mid March.
In addition, Centro MCS has also secured development funding to complete the development of $36 million Centro Toormina shopping centre, approximately 10kms from Coffs Harbour in New South Wales.
Centro MCS Syndicates manager Gerard Condon said the funding has been secured directly between the Syndicate and an unnamed bank.
Most importantly, he said the funding is contingent upon Centro MCS remaining as RE of the Syndicate.
The centre opened in 1987 and had been earmarked for redevelopment pending development funding. The redevelopment will include an expanded Kmart, full line Woolworths, Best & Less and 25 specialty stores.
As well as funding, the Interest rate hedging for the balance of the syndicate term has been secured directly with an unnamed large Australian financial institution.
Meanwhile, Condon rebuffed some of Pelorus assertions.
He denied that Centro MCS has sought to increase management fees during the Syndicate Term, and added that there has been no increase in management fees nor has the manager sought any increase.
And contrary to statements, Condon said Centro MCS will act in the best interest of MCS investors not Centro Properties Group.
“Centro MCS takes its role as RE very seriously and always acts in the best interests of investors,” he added.
Centro MCS currently has 36 syndicates valued at $8.5 billion currently under management on behalf of 16,500 investors.
Australian Property Journal
