Australia's Centro says seeking bids for 25 malls

SYDNEY, April 28 (Reuters) - Australia's debt-laden Centro Properties Group (CNP.AX: Quote, Profile, Research, Stock Buzz) said it is seeking bids for 25 of its shopping centres, but hopes to retain at least 50 percent ownership in them to retain management and leasing control.

The group, which borrowed heavily last year to fund a rapid U.S. expansion, must refinance A$5.4 billion ($5 billion) of debt by Wednesday. It is under pressure to sell assets to raise cash after being caught in the global credit crunch.

Centro, owner of 700 U.S. malls, said refinancing talks were continuing and there would be no update to the market prior to Wednesday's deadline. Banks are expected to grant a five-month extension.

"I imagine it would be Wednesday before we say anything. These things tend to go to the last minute," said Centro spokesman Mitchell Brown.

"We're still working towards it. The banks are still supportive, it just takes a while to get the documentation done," he said.

About two-thirds of Centro's shopping centres are in the United States, with the remainder in Australia and New Zealand. It holds the assets through a complex network of managed funds.

The company is selling part of its Centro Australia Wholesale Fund, which contains 28 shopping centres, 25 of which are wholly owned. Brown said buyers had expressed interest in smaller chunks but Centro hoped to avoid selling off individual centres.

"That's possible but it's not what we're pursuing as the primary objective. You may see a few here or there but we'd prefer not to," Brown said.

"Let's say you put four centres together and someone wanted to take a 50 percent interest in those four centres -- that's the kind of thing that would be ideal in our mind because we'd still then be managing, and marketing and leasing the shopping centres," he said.