Intu's Derby mall stake sold
Sep 11, 2020
A new deal with real estate investment firm Cale Street Partners has secured the future of one of the UK’s leading shopping centres in the Midlands.
Intu Derby is the first mall owned by stricken shopping centre owner Intu to change hands following the company’s collapse into administration earlier this year.
Cale Street, which acquired a 50% interest in the centre in 2019, has now bought the remaining stake, gaining full control of the 1.3m sq ft shopping destination.
Developed by Westfield in 2007, Intu Derby sits in an affluent core catchment of 2.3 million consumers with an annual spending potential of £10.9 billion. More than 21 million people visit the centre every year and over 200 brands are housed there, including Next, Zara, H&M, M&S, Hobbs, Hugo Boss, Whistles and JD Sports.
International property firm Savills has been appointed to oversee the management and day-to-day operations of the mall. Supported by the existing centre team, the real estate advisor will develop a new vision for the centre.
Jim Tucker, joint administrator of Intu Properties plc, said: “This is the first Intu centre to migrate to new management and ownership following the administration of the group’s Topcos back in June, and as such marks a key milestone in the administration process.”
Intu, which has 17 shopping centres in its UK portfolio, collapsed under the weight of its debt burden in June. Its malls have continued to trade during the administration.
Adam Tamsett, general manager for Intu Derby, said: “The centre has proven extremely resilient in recent months with an occupation rate above 90%, and the signing of new brand names this summer including Whistles, The Disney Store and Rickshaw Urban Indian Kitchen. The new management team will help build on this success to develop a new vision for the centre, and the onsite team are optimistic about the opportunities that lie ahead.”
Ken Ford of Savills added: “The fundamentals of Derby remain strong and I am looking forward to working with the team to develop a repositioning strategy that will ensure the centre can continue its positive trajectory. The centre enjoys high levels of interest from national brands, thanks to its strong catchment and footfall, and our plans will only help further this potential.”
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