// Intu offloads Intu Puerto Venecia in Zaragoza to a Spanish investment group
// Intu is currently seeking to overhaul its estate as it continues to fight rising rent costs
Intu has offloaded Spain’s largest shopping centre, Intu Puerto Venecia in Zaragoza, for €475.3 million (£405 million) to a Spanish investment group.
Following the deal, the firm will bank €237.7 million (£203 million), with the rest going to co-owner the Canada Pension Plan Investment Board.
Intu is currently seeking to overhaul its estate as it continues to fight rising rent costs. The firm owns several UK centres including Lakeside in Essex and Manchester’s Trafford Centre.
“The transaction is part of Intu’s stated strategy of fixing its balance sheet and will deliver net proceeds to Intu of around €115 million (£98 million) after repaying asset-level debt, working capital adjustments and taxation,” Intu said.
Intu Puerto Venecia currently sees an annual footfall of 19 million.
Intu chief executive Matthew Roberts said: “We are pleased to have successfully concluded this transaction and, as previously discussed, are at advanced stages of negotiations on the disposal of Intu Asturias in northern Spain.
“As we announced at the interim results in July, our number one priority is fixing the balance sheet, which includes creating liquidity through disposals.
“This transaction, which along with the part-disposal of Intu Derby and other sundry asset sales in 2019 brings the year-to-date disposals total to £479 million.”
The new owners are the Generali Shopping Centre Fund and Union Investment Real Estate.