Intu chief Fischel to step down after failed Hammerson merger

THE chief executive of Intu Properties, the shopping centre owner, is to step down after 17 years in the role, after the collapse of £3.4bn merger talks with rival Hammerson.

David Fischel had intended to retire once the tie-up was completed, but it was abandoned in April after Hammerson shareholders expressed concerns about increasing their exposure to British shopping centres. Mr Fischel will now leave the company later this year.

Intu, which owns Manchester’s Trafford Centre and Lakeside in Essex, warned of lower rental income growth this year on the back of turbulent conditions on the British high street, in a trading update on Thursday.

Retail landlords have been hit by a number of high-profile administrations, as well as companies reducing their store portfolios via company voluntary arrangements (CVAS), including New Look and House of Fraser.

Intu said that store closures had hit its annual rent roll by 0.9pc, although it pointed out that House of Fraser had kept all four of its stores in Intu centres.

The firm now expects like-for-like net rental income growth to be at the lower end of its previous range of 1.5pc to 2.5pc this year. Intu also posted a loss of £503.4m in the six months to June 30, compared to £122.7m profit a year ago because of “weakening sentiment” in the UK retail property investment market and lower levels of transactions. James Carswell, of Peel Hunt, said he “remained concerned around the valuation of ‘prime’ retail assets”.

Intu has continued to invest in its shopping centres, and is planning to open an £180m extension to its Watford site in October, followed by a £72m extension to Lakeside early next year.

But David Brockton, of Liberum, said the results revealed “marked valuation pressure on its shopping centres, over and above that experienced by Hammerson and Land Securities”.

Shares plunged to 8.3pc to an all-time low of 165p.