// Intu has sold a 50% stake in its Derby centre to Cale Street for £186m to reduce debt
// The deal means Cale Street will enter a joint venture with Intu for Derby
// Derby centre was redeveloped and extended in 2007 and has over 200 units
Intu has sold a 50 per cent stake in its Derby shopping centre to investment company Cale Street Partners for £186 million.
The deal means Cale Street will enter a joint venture with Intu for Derby, which had a net rental income of £25.2 million last year and currently has an annual footfall of 22 million.
Intu’s Trafford Centre on the other hand, had a challenging year amid a retail crisis.
Intu Derby was redeveloped and extended in 2007 and has over 200 units. Intu will continue to manage the site.
The deal is also part of Intu’s mission in reducing its debt through disposals and part disposals, as the shopping centre giant revealed in its latest annual report that it had net external debt of £4.87 billion.
The results also showed that Intu swung to a loss of £1.17 billion in 2018 as it faced a difficult trading period due to store closures.
“In what is a challenging investment market, this innovative transaction, which is in line with the December 2018 valuation, shows Intu is delivering on its strategy of reducing loan to value through disposals and part-disposals,” Intu chief executive designate Matthew Roberts said.
“On a proforma basis, we expect the impact of this transaction to reduce our loan to value by around one per cent.”
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