Nov. 28 (Bloomberg) -- Centro Properties Group, the owner of 794 shopping malls in the U.S., Australia and New Zealand, is continuing talks with lenders to extend more than $4.5 billion of borrowings by Dec. 15 after failing to raise new capital.

The real estate investment trust may have to go into receivership unless creditors including Commonwealth Bank of Australia Ltd. and National Australia Bank Ltd. agree to roll over loans, Melbourne-based Centro said today in a statement. Centro's proposals include an offer for banks to accept a hybrid security that would stabilize the company by lowering debt.

``We have made the point that we believe that the company's skills in operating this retail portfolio will maximize it's value and returns to all stakeholders and that we are the best custodians of the assets,'' Chief Executive Officer Glenn Rufrano said today at Centro's annual general meeting, according to a copy of the speech filed with the Australian stock exchange.

Centro, which lost 99 percent of its market value in the past 12 months, is struggling to sell assets amid slumping values for malls stretching from Yonkers, New York to Perth, Western Australia. Since the start of the year some 35 stores at Centro's U.S. malls indicated they will close or reject their leases as retailers including Linens `n Things Inc. and Circuit City Stores Inc. file for bankruptcy after retail sales slumped nationwide.

Centro has group debt of A$17.3 billion and its borrowings are equal to about 73 percent of total assets, the company said in its full-year earnings report published Aug. 29.

The value of Centro's U.S. properties fell to $12.8 billion from $13.9 billion a year earlier, according to those figures.

Centro Properties also is seeking to increase the independence of its Centro Retail Group unit and has begun talks with disenchanted investors to settle a class action lawsuit, Centro Properties Chairman Paul Cooper said at today's meeting.

To contact the reporter on this story: Garfield Reynolds in Sydney at greynolds1@bloomberg.net

Last Updated: November 27, 2008 18:38 EST