[COM] Armada Arndale (Redevelopment) | $200m

[pushbutton]

Sounds to me like NOTHING went wrong as far as Andrew Scott's concerned!

[stumpjumper]

Nuthin' that a lazy 3 mill didn't fix.

[Howie]

I do hope he answers for the huge amount of undisclosed debt centro had - smells like someone cooked the books, so he's probably got a great big black cloud lingering over his future after he leaves the company.

[pushbutton]

I do hope he answers for the huge amount of undisclosed debt centro had - smells like someone cooked the books, so he's probably got a great big black cloud lingering over his future after he leaves the company.

I could handle a big black cloud as long as I also had the 3 million dollars. It's not like he'll ever have to work again.

[Howie]

Not if the black cloud meant going to prison?

[Like putty]

I'm intrigued as to who was in the wrong in terms of mixing up just how much debt was "current". There was probably some oversight or obfuscation at Centro, but what were their auditors doing? It seems like a pretty big oversight on their part. And I wonder if shareholders could take an action against the auditors for the loss of value in their shares? Interesting days ahead, methinks...

[how_good_is_he]

What I remember reading is the accounts with the "mistake" were preliminary and unaudited and technically not to be relied upon. It was when the quarterly account came out did they classify the debt correctly. Sounds like they were stalling for time while trying to re-finance the debt.

[Like putty]

Perhaps we should thank Centro et al for pointing out the limitations of our stock exchange - all price sensitive information (including preliminary accounts) to be released to the market, even if wrong. Allow everyone to rely upon the same suspect information.

Sigh, a cynical night indeed.

[AG]

I'm intrigued as to who was in the wrong in terms of mixing up just how much debt was "current". There was probably some oversight or obfuscation at Centro, but what were their auditors doing? It seems like a pretty big oversight on their part. And I wonder if shareholders could take an action against the auditors for the loss of value in their shares? Interesting days ahead, methinks...

PWC, PriceWaterhouseCoopers.

[pushbutton]

Latest update is that according to Centros new CEO, no assets are likely to be sold off at this stage, but instead they are looking for companies to simply invest in Centro, or perhaps be PART owners of a property, but with Centro still retaining the majority share of ownership and still managing the centres.

This would appear to be good news for the arndale development, if they are able to achieve this.

So it now looks like, possibly, things may not be quite as bad as previously thought for Centro, and the Arndale development still has a reasonable chance of going ahead.

[Xaragmata]

I just heard on ABC / 891 news that the Arndale redevelopment is "on hold".

[AG]

$230m at risk over Centro plunge
Maurice Dunlevy | February 01, 2008
THE Centro collapse has jeopardised up to $230 million worth of shopping centre projects in four states, with South Australia likely to be the biggest loser.

While work continues at all Centro sites, at least for the time being, all new projects, including a $100 million redevelopment of Adelaide's 40,000sqm Arndale shopping centre, are on hold.

Centro recently finalised tenders for a construction contract for the Arndale project which should have meant an immediate start for one of Adelaide's biggest and most keenly sought building contracts.

But with the banks controlling Centro's purse strings, the project is in limbo, with the smart money on the likely abandonment of a project that was meant to revive one of Australia's oldest shopping malls, which was built in 1963.

"Most tenderers, and that's nearly all of Adelaide's major builders, don't think it will happen," one said.

The construction contract, worth around $60 million, was eagerly sought, even attracting Sam Tarascio's Melbourne-based Salta Properties group. Multiplex, which is privately criticised by other big builders because of an alleged "cosy" relationship with Centro, also tendered. Multiplex completed an $80 million redevelopment of Centro's Colonnades centre in Adelaide's south and is yet to complete a similar $74 million project at Bankstown in Sydney.

When Centro announced its Arndale makeover in November, the timing of the announcement was also meant to ease investor concerns about the group's exposure to US property markets.

Centro spokesman Jim Kelly said yesterday that the banks now had to give permission for ongoing capital expenditure. But Mr Kelly said work had not stopped on any project.

Last year, Centro had about $380 million of development started or in a development pipeline. According to Centro, major projects at Warrnambool, in southwestern Victoria, and Gympie and Gladstone, in Queensland, have been completed. One of the largest projects that is still a work in progress is a new neighbourhood shopping centre at Somerville on Victoria's Mornington Peninsula. Work started late last year with the project due for completion by mid-2009 and expected to have an end value of more than $87 million.

In NSW, Centro has projects at Armidale and Lake Macquarie.

[Ben]

More dissapointing news today.

From The Advertiser:

THE Centro Property Group has reportedly suspended its plans to redevelop the Arndale Shopping Centre in Adelaide till the company can come out of its debt crisis.

Last year, the struggling shopping centre owner and sub-prime victim had announced plans to spend $100 million on extensions and upgrading.

But the company is currently struggling to settle a $4 billion debt because of a global credit squeeze.

Arndale is a one of several projects around Australia that have been suspended.

[pushbutton]

Not good, but under the circumstances obviously Centro has no choice. Let's hope they can get back in control of their debts soon and before it gets to the point where they would have to seek planning permission for the project yet again!

[rev]

Apparently it will happen, its just a matter of "timing"...