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CEP`s ann: Proposes CMBS Issue

Document date:  Mon 11 Nov 2002
Published:  Mon 11 Nov 2002 18:08:14
Document No:  197639
Document part:  A
Market Flag:  N
Classification:  Issued Capital - Other

CENTRO PROPERTIES GROUP                       2002-11-11  ASX-SIGNAL-G

HOMEX - Melbourne                                                     


Centro Properties Group ("Centro") today confirmed that it would
visit investors ahead of a planned A$200 million, Commercial Mortgage
Backed Securities "CMBS" transaction. Centro is Australia's 6th
largest property trust by indexed market capitalisation, and
specialises in the ownership and management of retail shopping

Security provided to noteholders will comprise Centro's mortgages
over one regional and six sub-regional shopping centres. The
properties are geographically spread throughout Australia and have a
current market valuation of approximately A$500 million.

Andrew Scott, Centro's Chief Executive Officer commented, "Centro has
a strong financial risk management focus and this transaction
provides the platform for Centro to diversify its funding sources
whilst extending its debt maturity profile."

The transaction will have a scheduled maturity date of 5 years from
the issue date. The structure allows for the issue of fixed and
floating rate notes. Two classes of notes will be offered to
investors, A$180.3 million of notes assigned a preliminary rating of
AAA and A$19.7 million assigned a preliminary rating of AA by
Standard & Poor's. Pricing and final structure will be determined in
consultation with investors following completion of investor

The centres include long-term leases to major tenants such as
Woolworths, Coles, David Jones, Target, Big W and Kmart. There are in
excess of 500 specialty tenancies across the seven centres providing
significant diversity of income for debt investors. Noteholders will
be afforded the full benefit of cross collateralisation of the

Commonwealth Bank and ANZ Investment Bank will be Joint Arrangers and
Lead Managers for the issue with Deutsche Bank acting as Co-manager.

For more information:

Andrew Scott     Centro Properties Group       (03) 8847 0033
Geoff Martin     Commonwealth Bank             (02) 9312 0758
John Barry       ANZ Investment Bank           (03) 9273 1545