Intu takes £1bn hit as Brexit halts takeover
OVER £1billion was wiped from the value of Intu Properties yesterday as Brexit jitters derailed a takeover bid for the owner of some of Britain’s biggest shopping centres collapsed.
A consortium made up of Intu shareholder Peel Group , Saudi conglomerate Olayan Group and Canada’s Brookfield Property Group had made an indicative £2.9billion approach last month, but walked away citing “current macroeconomic conditions and the potential near-term volatility across markets”.
Intu’s chief executive, David Fischel, admitted mounting concern over Brexit had “obviously ramped up a lot in the last couple of weeks and has made it a very hard climate to make a big investment decision”.
Intu had also been dealt a blow by Sports Direct tycoon Mike Ashley’s decision to close four House of Fraser stores after failing to agree new rent deals.
Peel Group chairman, John Whittaker, tried to limit the damage by insisting it remains “fully committed as a long-term shareholder” to Intu, whose centres include Lakeside, Trafford Centre and Potteries.
He added: “Intu’s portfolio of super regional and prime city centre shopping centres is trading strongly and benefiting from the retailer store rationalisation process that is currently underway in the UK. Physical retail continues to play a key role in all successful multichannel retailer sales strategies and Intu’s national portfolio enjoys some of the highest customer footfall in the country.
“There is also significant potential to add to the portfolio through development of under-utilised land for alternative uses such as residential, hotels and offices, creating critical mass to provide unparalleled, winning shopping and leisure destinations and experiences.”
But Intu shares plunged 78p to 114½p as it reeled from a second aborted deal this year. Brent Cross and Bullring owner Hammerson abandoned a £3.4billion buyout in April.
It will also “substantially reduce” dividend payments in the short term.