Intu threatens large tenants over unpaid rent

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Intu threatens large tenants over unpaid rent
Intu said its board have also agreed to a 20% salary cut for next 3 months, and identified around £3m of cost-savings in the short term.
// Intu says it only got 40% of all rent for the first quarter of the year, which was due end of March
// As a result, it threatened to take “robust action” against large tenants who have not paid
// Intu is now offering monthly rent collection

Intu has threatened to take “robust action” against large tenants who have not paid their latest rent bills.

The cash-strapped shopping centre giant said it has only received 40 per cent of all rent and service charge for the first quarter of the year, which was due by the end of March.

Many tenants have been forced to shut their doors due to the government-mandated lockdown in the wake of coronavirus.


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It said it is now offering monthly, rather than quarterly, rent collection and remains in talks regarding a further 28 per cent of tenants.

However, it called out a “very small number” of tenants who it said have not engaged in talks over a solution.

Intu said it was prepared to “take more robust action to enforce the legally binding terms of those leases” against “large, well-capitalised brands who have the ability to pay but have chosen not to”.

The retail property firm also said it has now agreed waivers for the potential breach of covenants on its loans.

Intu said its shopping centres continue to operate on a “semi-closed basis”, with only essential stores such as supermarkets and pharmacies allowed to remain open.

Around 60 per cent of staff in its shopping centres and around 20 per cent of head office workers have been furloughed in line with the UK Government’s coronavirus job retention scheme.

Intu said its board have also agreed to a 20 per cent salary cut for next three months, and identified around £3 million of cost-savings in the short term.

Earlier today, the company revealed it had hired David Hargrave as its chief restructuring officer, as the business works through its strategy to fix its balance sheet.

Shares in Intu nudged 0.4 per cent lower to 5.5p.

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