MALL OWNER ASKS BANKS FOR HELP
ONE of Britain’s biggest shopping centre owners is asking its banks to cut it some slack after being left reeling by the coronavirus pandemic.
Intu Properties, which has an empire that includes the Trafford Centre in Manchester and Essex’s Lakeside, was already struggling under a £4.7billion debt mountain.
Now the shutdown of all stores apart from those selling essential goods to try to limit the spread of Covid-19 has squeezed it further.
On Wednesday this week – when many firms had been expected to pay their rent bill for the quarter – Intu said it received just 29% of what it was owed.
To help tenants Intu is cutting certain service charges.
With the outbreak escalating, it said it was likely to breach the terms of its loans and was holding discussions with its banks.
Meanwhile, rival British Land has, like many firms in recent days, suspended its dividend payment.
The industry giant is less exposed to the crisis than Intu as it is more focused on the office market.
The challenge to the high street came as the Office for National Statistics yesterday announced retail sales fell 0.3% in February, before the economic impact of coronavirus was properly felt here.
Richard Lim, chief executive of Retail Economics, said: “With all non-essential physical retail now shut, most of the industry is in survival mode.”
Sam Miley, of the Centre for Economics and Business Research, said: “Retail sales figures are likely to take a beating over the coming months.” hit hard