ELYRIA — If Centro Properties Group, the owner of Midway Mall, succeeds in righting its  finances, it won’t be just the mall that will be affected.

The Australian-based conglomerate of subsidiaries and managed funds took over ownership of Midway Mall in May 2006 when the Westfield Group sold the majority of its stake in the property for $98.5 million.

But the company’s interest in Lorain County did not stop there.

Centro also acquired three major shopping stores and plazas near the mall — the former Dillard’s store, which is attached to the mall, and both Midway Crossings and Midway Market Square retail centers. The acquisitions pushed the company’s local ownership to more than 1.5 million square feet.

The deals were inked in a $3.4 billion cash deal in which Centro bought New Plan Excel Realty Trust, which helped to accelerate Centro’s push into the U.S. real estate market.

But it may very well be aggressive financial moves like that that have placed Centro in its current fiscal state.

Thanks to an extension from Australian and U.S. lenders, Centro is working to refinance nearly $5.4 billion in debt, according to a release from the company. The original deadline of early February has been pushed to April 30, which gives Centro time to sell some of its assets to repay the debt or find a major investor.

Centro has more than 700 shopping centers in the United States.

Susan Godorov, vice president of marketing for Centro Properties Group, said she can’t say at this time what is planned for Midway Mall, but good news could come soon. There have been talks that a revitalization plan is soon to be announced, but Godorov refused to say whether there’s any truth to that rumor.

“We are continuing to talk to numerous retailers, and as soon as we have some signed leases, we will be happy to have something to say,” she said.

The fate of the 43-year-old mall has been on the minds of many in the past year or so, making guest appearances in both Elyria Mayor Bill Grace’s state of the city addresses in 2007 and 2008.

“Midway Mall is somewhere between challenging and struggling, but I’m confident in the ownership of the mall. In them I see hope for Midway Mall’s future,” Grace said Tuesday when he delivered this year’s address.

Grace points to Centro’s growing Elyria presence as a sign of optimism.

“The acquisitions increased their investment in Elyria, and I can’t help but believe that means the area will get special attention when they look at how they will revitalize assets in their portfolio,” Grace said.

Contact Lisa Roberson at 329-7121     or lroberson@chroniclet.com.

 

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