// Trafford Centre is no longer under Intu’s control after no viable bids were made in a sale process
// Canada Pension Plan Investment Board was a key lender to Intu before it filed for administration
// The pension fund has now taken control of Trafford Centre, considered the 3rd largest UK shopping centre by size
A Canadian pension fund has taken control of Manchester’s Trafford Centre after previous owner Intu collapsed into administration.
Canada Pension Plan Investment Board (CPPIB) was a key lender to Intu before it filed for administration during the first UK-wide Covid-19 lockdown in the spring.
CCPIB provided the company with a £250 million lending facility, specifically for Intu’s Trafford Centre subsidiary.
- Intu’s Trafford Centre seeks £1.3bn buyer
- Canadian pension fund pushes for Trafford Centre sale following Intu’s collapse
- Intu: What went wrong?
In June, Intu slid into administration and a sale process was launched for the Manchester shopping hub.
Out of the 17 shopping centres in the UK that fell under Intu’s umbrella before its administration, Trafford Centre was its most valuable asset.
It is also considered is the third largest shopping centre in the UK by retail size.
However, CCPIB said no viable bids were received by administrators.
As the principal creditor, the pension fund said it has now exercised its rights to take ownership of Trafford Centre after no potential suitors came forward.
“The Trafford Centre is one of the UK’s top five shopping centres, welcoming more than 30 million shoppers annually, and counts many leading global retailers among its occupiers,” CPPIB Credit head of real assets credit Geoff Souter said.
“While conditions for retail in 2020 have been very challenging, we are able to take a long-term view and believe that, with strategic management and investment, the Trafford Centre has strong prospects.
“An immediate priority is to support the Trafford Centre’s management, ensuring continued optimal operation of the Trafford Centre, and to appoint a long-term expert operating partner.”
Trafford Centre was developed by the Peel Group in the late 90s before it was sold to Intu in 2011 in a deal worth £1.65 billion – the largest single property acquisition in British history.
Meanwhile, CCPIB is a significant investor in UK shopping centres and has previously invested in London’s Westfield Stratford, Birmingham’s Bullring and Grand Central.
with PA Wires