AUSTRALIA'S CENTRO SET TO EXPAND PRESENCE IN US.

SYDNEY, March 1 Asia Pulse - Australia's Centro Properties Group (ASX:CNP) will become the fifth largest manager of US shopping centres under a $US5 billion ($A6.36 billion) deal to buy American shopping centre investor New Plan Excel Realty Trust.

International shopping centre operator Centro and retail property group Centro Retail have offered $US33.15 cash per share under a merger agreement with the US-listed firm, which has been unanimously recommended by New Plan directors.

Centro Retail's fund manager Shane Dudley said if the deal was completed it would cap a remarkable expansion for the company after only entering the US in 2003.

"Who would have thought that in just three years Centro would be managing 90 million square foot of retail space," Mr Dudley said.

"We'll be the third largest manager of US shopping centres excluding malls and if you include malls we'll be the fifth largest manager in the US."

The number of US assets under Centro management will almost double to more than 700 with significant development opportunities.

Centro said more than 70 per cent of the centres were anchored to a major supermarket like Wal-Mart or Kroger's, giving them some insulation from fluctuations in discretionary spending.