Intu to sell three major malls in bid to raise cash
Intu is reportedly looking at selling its centres in Merry Hill and Milton Keynes and its 50% in St David’s, Cardiff after revealing it could go bust unless it raises extra funds.
The shopping centre operator has already sold a 50% stake in its Intu Derby centre to Kuwait-backed Cale Street Investments, and disposed of its two malls in Spain for a combined £324 million in 2019.
The three UK centres being put on the block have a combined value of just over £1 billion, but have nearly £800 million of debt held against them, reported the Evening Standard. If sold at book value, that would provide £214.4 million of equity.
Agents at CBRE have been appointed to market the buildings.
Intu is in a race against time to secure extra cash after a planned equity raise of up to £1.5 billion failed to get enough support from potential investors.
Last week, the company warned that there is material uncertainty over its ability to survive after suffering losses of about £2 billion in 2019. It blamed "extreme market conditions" for investors’ jitters.
More shopping centres could be put on sale if Intu’s financial struggles continue. Its UK property portfolio includes Trafford Centre, Manchester Arndale and Intu Metrocentre.
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