CNP 0.00% 4.0¢ cnpr group

for cnp management an idea to think about.

  1. 2,852 Posts.
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    Make a list of 20%, say, of properties that come at the least wanted end your portfolio. Strata title them in some sort of body corporate structure, and offer the freehold of the shops to the tenants who have the option of buying instead of renting. This is how big owners got rid of a lot of obsolete office properties -selling them by strata to tenants who wanted to own not rent on a first refusal basis. (If you dont buy someone else might) Centro could keep management rights and the shops that didnt sell. Centro could then go to the short term lenders and say we have agreements for sale of $(x) value which will provide sale revenue in this time schedule and deposits are held in trust. Maybe they would get a much better price than they would from the big sharks. This especially for the shops in the smaller neighbourhood centres in the US they bought most recently. Do Centro managers read HC? Probably not. It is much more of a sellers market when a business is offered the chance to buy the real estate in a location where they have built up goodwill etc. and perhaps live in the area. Security of tenure is attractive which is not a selling point for the bulk operators.
 
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