Mexico's Ara suspends malls' collective sale

[SAO PAULO] Consorcio Ara SAB has suspended an auction to sell a group of about US$387 million of shopping malls and is now considering selling the centres individually.

The company was working with Morgan Stanley on the sale of the malls, which the Mexico City-based builder co-owns with New York-based private-equity firm O'Connor Capital Partners Inc, said investor relations official Alicia Enriquez. While the contract with Morgan Stanley is still valid, Ms Enriquez said the formal sale process stalled when the top bidder failed to obtain sufficient financing. "What we're looking for is the best offer, and we're not in a rush to sell," Ms Enriquez said.

Keeping the properties means Ara will forego a cash infusion at a time when the home-building industry is reeling from a shift in government housing policy.