Intu's Lakeside and three other malls get new funding and management
A number of shopping centres owned by failed UK malls giant Intu Properties have seen their futures made more secure as their creditors voted in support of proposals that would put their finances on more solid ground.
Intu SGS, which is a holding company of the parent firm, operates the firm’s Lakeside mall in Essex, plus Watford, Victoria Centre in Nottingham, and Glasgow’s Braehead. It said the vote should ensure the "smooth operation" of the four shopping centres. It also said control of the malls is being transferred to new management.
The parent company went into administration at the end of June as the weight of its debts and the inability to raise more funding during the coronavirus crisis made it impossible to continue.
But all 17 of the malls it controlled through a variety of subsidiary property companies at the time it went under have continued to trade and have managed to carry on attracting big-name new tenants.
Intu SGS had launched the plan for its bondholders and lenders earlier this month and was seeking covenant waivers and interest deferrals. The vote in its favour also means a new facility of up to £30 million will be available to it and withheld cash can be released to boost its operational liquidity.
The company said that occupancy at the four malls is running at 92% and more than 90% of the units at them have reopened.
Intu Properties continues to control the centres for now, but SGS will be in control by year-end and has named Global Mutual to be asset manager and Savills as property manager.
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