Intu admits value of shopping centres empire has fallen as bid looms

Intu owns a number of UK shopping centres, including in Watford
Joanna Hodgson23 October 2018

Intu Properties on Tuesday admitted the value of its empire has fallen, but the malls owner came out fighting to woo investors mulling a £2.9 billion takeover offer for the business.

The Lakeside landlord said its portfolio value stood at £9.6 billion as at September 30, down from £9.8 billion in June. It referred to “current negative sentiment towards UK retail property”.

It also cut its full-year comparable rental income growth forecast after rents were hit when retailers such as House of Fraser entered administration.

The firm’s update comes days after a consortium led by Intu’s deputy chairman John Whittaker upped a proposed offer to 215p per share.

The potential bidders — Peel Group, owned by Whittaker, investor Olayan and Canada’s Brookfield — already own 29.9% of Intu.

David Fischel, the boss of Intu, which in April saw Hammerson ditch a £3.4 billion swoop for its business, was upbeat today.

He said 84 long-term leases were agreed between July 1 and October 23, and there is scope for 5000 homes to be built on land surrounding its centres.

The company last month opened its £180 million extension of its Watford centre.

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