Centro Retail Trust yesterday flagged a $3.75bn capital transaction - possibly through a float of property assets - that would be part of a major restructure of the debt-laden Centro group.

CER's Melbourne annual general meeting was told falling valuations, particularly for Australian properties, had put loan-to-value covenants under pressure, forcing the trust, which lost $2.7bn in the past year, to consider all its possibilities.

Centro chief executive Glenn Rufrano said although the listed retail trust had not breached loan covenants, its current 77% LVR (loan-to-value ratio) needed to be reduced to 25-35% to bring it into line with other Australian property groups.

The Australian