With Credit Line, Center Trust to Avert Crisis

Center Trust Inc., a West Coast shopping center developer and owner, said it obtained a $200-million credit line, avoiding a liquidity crisis that may have forced it to sell off properties at fire-sale prices.

The Manhattan Beach-based real estate investment trust said the new credit line from GE Capital Real Estate replaces one scheduled to come due Dec. 31. The old credit line required a payment of $85 million by June 30.

“Obtaining this new credit facility gives us additional flexibility in accomplishing our strategic objectives,” Edward Fox, chairman and chief executive, said in a statement.

Center Trust’s shares are down 32% this year on, among other things, concern the company might not be able to come up with the cash to make required debt payments.

It still must sell assets to retire $128.6 million of convertible debt maturing in January 2001, according to James Sullivan, a real estate analyst at Prudential Securities Inc.

With Monday’s announcement, the likelihood that Center Trust will be able to repay the debt “has been clearly enhanced,” Sullivan said in a research report.

Center Trust’s shares rose 6 cents to close at $6.44 Monday on the New York Stock Exchange.

The company owns or controls 55 retail properties, including two regional malls, mostly in California.