Intu shopping centres see £298m wiped off their value

trafford Centre owner intu reported a slump in the value of its shopping centres amid a crisis gripping the retail sector.

the group, which also owns Lakeside in essex and the Metrocentre in Gateshead, said the value of its portfolio fell by £298m or 3pc to £9.6bn between June 30 and September 30.

it blamed the misery on the high Street and shopping centres which has seen hundreds of stores close this year.

intu is considering a £2.9bn takeover by a pack of investors led by property mogul John Whittaker, who is deputy chairman of the firm and owns a 27pc stake.

the firm warned its full-year rental income would also take a hit following a string of retail failures this year which include the collapse of house of fraser.

income is expected to grow by no more than 1pc.

intu’s latest trading update comes after a consortium of investors made up of Whittaker’s Peel Group, Saudi conglomerate olayan and brookfield Property tabled its £2.9bn bid. but that is £500m lower than the offer made by rival hammerson earlier this year.

in an embarrassing climbdown for both firms, hammerson was forced to walk away from the deal after opposition from shareholders. intu chief executive david fischel will step down later this year following the failed tie-up.

despite its declining portfolio value, intu managed to improve occupancy of its shopping centres, which are now 97pc full, with retailers including Monki, bershka and ralph Lauren opening stores across its sites.

russ Mould, investment director at aJ bell, said: ‘the company managed to push through some rent increases and this looks like a reasonably resilient performance given the pressures on the retail sector.

‘as such it may lead shareholders to question the generosity of a proposed offer which, adjusted for dividends, comes in at just 210.4p a share.’