Wednesday, October 18, 2017

Intu relinquishes majority ownership of Intu Bromley for £177m

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Intu‘s third quarter trading update has indicated continuing consumer confidence with a boost in footfall and new long term leases, plus the sale of its Bromley shopping centre.

The company today confirmed the sale of its 63.5 per cent stake in Intu Bromley to Alaska Permanent Fund Corporation (APFC) for £177.9 million.

APFC have also acquired Aviva‘s 21.5 per cent stake in the shopping centre, which receives 20 million visitors per year, while the London Borough of Bromley – the largest borough in the city – retains the remaining 15 per cent.

“We are pleased to have successfully concluded this transaction which enables us to recycle capital into our UK development programme focused on our super-regional assets and, at a consideration above our June 2016 market value, demonstrates the continuing investment demand for prime UK shopping centres,” Intu chief executive David Fischel said.

READ MORE:  Shopping centre firm intu posts strong half-yearly figures

Meanwhile, Intu recorded a 1.2 per cent year-on-year increase in footfall at its UK shopping centres, while its Spanish centres had a boost of two per cent.

Intu also signed on 67 new long term leases – 61 in the UK and six in Spain – for £13 million of new annual rent, four per cent more than previous passing rent.

While the trading update indicates that occupancy was at 95.6 per cent, down by 0.6 per cent against June 2016, Intu said the new lettings have more than offset impact came from the closure of BHS.

Finally, Intu said its UK development pipeline was on track, which includes new restaurants at Intu Eldon Square being handed over to the occupiers, and the £180 million Intu Watford extension – which is 60 per cent pre-let – progressing in line with our construction programme.

“The business has a pipeline of attractive organic investment opportunities in both the UK and Spain which will enhance intu‘s long-term growth potential,” Fischel said.

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