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Intu

From Alfawiki
Intu Properties plc
Company typePublic limited company
IndustryReal estate investment trust (REIT)
PredecessorTransatlantic Insurance Holdings plc, Liberty International plc, Capital Shopping Centres Group plc
Founded1980
FounderSir Donald Gordon
DefunctJune 2020
FateEntered administration
Headquarters
London
,
United Kingdom
Area served
United Kingdom, Spain
ProductsShopping centres ownership and development

Intu Properties plc was a UK-based real estate investment trust (REIT) specializing in the ownership and development of shopping centres. The company began as Transatlantic Insurance Holdings plc before changing its name to Liberty International plc. In May 2010, following the separation of its Capital & Counties Properties division, it rebranded as Capital Shopping Centres Group plc. On 18 February 2013, the firm adopted the Intu brand, subsequently rebranding most of its retail properties under the Intu name starting from May 2013.

Its stock was traded on both the London and Johannesburg markets until it entered administration in June 2020. Prior to this, the company held full or partial ownership of 17 shopping centres across the UK and one located in Spain.

History

Established in 1980 by Sir Donald Gordon, Transatlantic Insurance Holdings plc originated as a subsidiary of Liberty Life Association of Africa. During the 1980s, the company concentrated on investments in life assurance but had divested all such interests by 1991.[1] A merger with Capital & Counties, a prominent developer of shopping centres, took place in 1992, which secured a listing on the London Stock Exchange.[1] The entity was renamed Liberty International in 1996.[1] After spinning off Capital & Counties Properties in May 2010, it became known as Capital Shopping Centres Group (CSC).[2]

In 2010, CSC divested its major stake in its Californian subsidiary, Capital and Counties USA, selling it to Equity One. Equity One was subsequently acquired by Regency Centers Corporation.[3][4]

In 2011, CSC purchased the Trafford Centre from The Peel Group, valuing the asset at around £1.65 billion. As part of this transaction, Peel chairman John Whittaker was offered a 20% share, which he increased to become the largest shareholder with a 24.63% holding by 2012.[5][6]

Additionally, in November 2011, CSC acquired Westfield Group’s 75% interest in Westfield Broadmarsh located in Nottingham.[7]

Rebrand as Intu

In January 2013, CSC underwent a rebranding to become Intu, updating the names of twelve shopping centres to align with the new consumer-oriented brand. This transformation introduced a fresh orange and black visual identity, featuring a bird emblem representing "joy." To adapt to evolving consumer trends, Intu pioneered the UK's first online shopping centre and brought all shopping centre employees in-house, ending their previous employment under the facilities management firm Bilfinger Europa.

2013 to 2019

On 27 February 2013, Intu reached an agreement to acquire Midsummer Place in Milton Keynes from Legal & General for £250.5 million, completing the transaction by March.

In March 2014, Intu expanded its portfolio by purchasing Merry Hill Shopping Centre and Westfield Derby for £867.8 million, securing full ownership of Westfield's Derby centre as well as Sprucefield Park in Northern Ireland.

A proposed £3.4 billion acquisition of Intu by property developer Hammerson was announced in December 2017 but was subject to shareholder approval. Hammerson later withdrew the bid in April 2018 due to declining footfall and challenges faced by retailers. Subsequently, Peel Group, Olayan Group, and Brookfield Property submitted a £2.8 billion offer but retracted it after conducting due diligence.

By November 2019, Intu was negotiating the sale of three Spanish shopping centres: Puerto Venecia (Zaragoza), intu Asturias (Oviedo), and intu Xanadu (Madrid). The Zaragoza asset was sold in December 2019 for €237.7 million, generating approximately €115 million in net proceeds, followed by the Oviedo centre's sale in January 2020 for around €85 million.

2020 demise

In March 2020, Intu abandoned a planned £1.3 billion emergency capital raise after failing to secure adequate investor backing, burdened by debts totaling £4.5 billion. The company issued warnings about a potential collapse following a reported £2 billion loss for 2019. Over the year, share prices had fallen nearly 90%, dropping an additional 25% after the financial results were announced. By late March, with retailers deferring rent payments due to the COVID-19 pandemic, Intu indicated it would require lender waivers and was likely to breach debt covenants by July; shares declined 11% to 3.6p. In June, after unsuccessful financial restructuring negotiations and facing possible closures of shopping centres, Intu appointed KPMG as administrators and formally entered administration on 26 June.

In August, Intu SGS—a subsidiary managing Intu Watford, Braehead, Victoria Centre, and Lakeside—secured £30 million in funding to take full ownership of these centres, appointing Global Mutual as asset manager and Savills as property manager. By October, Intu SGS had completed control with new management teams established. In September, transfers of Intu Derby, Merry Hill, and Milton Keynes centres to new owners were confirmed. Additionally, Intu announced that Chapelfield would be handed over to new owners whose identities remained undisclosed.

Properties

As of 31 December 2019, Intu's property investments were valued at £5.9 billion, encompassing full or partial ownership of 17 shopping centres across the UK:

Name Market value (in Pound sterling) Location Ownership Fate
intu Braehead £288.9m Renfrew, Renfrewshire (near Glasgow) Fully owned by Intu Agreement reached for sale to Intu SGS; renamed Braehead Shopping Centre
intu Broadmarsh Template:N/A Nottingham, Nottinghamshire Previously held 70% by Intu; Nottingham City Council held 30% Permanently closed prior to Intu’s administration; ownership reverted to Nottingham City Council
intu Bromley £200m Bromley, Bromley Previously owned 63.5% by Intu; Aviva held 21.5%; London Borough of Bromley held 15% Ownership transferred to Alaska Permanent Fund in late 2016; renamed The Glades
intu Chapelfield £106.5m Norwich, Norfolk Jointly owned: Intu (50%) and LaSalle Investment Management (50%) Management assumed by LaSalle; renamed Chantry Place
Intu Derby £77.3m Derby, Derbyshire Shared ownership: Intu (50%) and LaSalle Investment Management (50%) Sold half stake to Cale Street Investments; now fully owned by them; renamed Derbion
intu Eldon Square £214.1m Newcastle upon Tyne, Tyne and Wear Owned 60% by Intu; Newcastle City Council held 40% Management transferred to MAPP; renamed Eldon Square
intu Lakeside £1,000.0m (£1 billion) West Thurrock, Essex (near London) Fully owned by Intu Sale agreed with Intu SGS
intu Metrocentre £676.8m Gateshead, Tyne and Wear Ownership split: Intu (54%), GIC Real Estate (36%), Church Commissioners (10%) Management taken over by Sovereign Centros
intu Merry Hill £587.6m Dudley, West Midlands Fully owned by Intu since June 2016 Sale agreed with Ellandi
intu Milton Keynes £212.5m Milton Keynes Fully owned by Intu Sale agreed with Ellandi; renamed Midsummer Place
intu Potteries Template:N/A Hanley, Staffordshire, Staffordshire Transferred to MAPP management Renamed The Potteries Centre
Trafford Centre £1,669.5m (£1.67 billion) Trafford, Greater Manchester Transferred under The Trafford Centre Limited Renamed The Trafford Centre
The Chimes, Uxbridge Template:N/A Uxbridge, Greater London Ownership: Intu (20%), Kumpulan Wang Persaraan (80%) Management transferred to Savills; renamed The Chimes
Victoria Centre £201.0m Nottingham, Nottinghamshire Sale agreed with Intu SGS
Atria Watford £324.9m Watford, Hertfordshire Ownership: Intu (93%), Watford Borough Council (7%) Sold to Global Mutual; renamed atria Watford
Cribbs Causeway £159.3m Almondsbury, Gloucestershire (near Bristol) Joint ownership: Intu/M&G Real Estate (66%), JT Baylis (34%) Intu’s share transferred entirely to M&G Real Estate
Manchester Arndale £309.0m Manchester, Greater Manchester Ownership: Intu/M&G Real Estate (95.3%), Others (4.7%) Transferred Intu’s stake to M&G Real Estate
St David's, Cardiff £230.0m Cardiff Jointly owned: Intu (50%) and Land Securities (50%) Transferred Intu’s share to Land Securities
Madrid Xanadú £233.8m Madrid, Spain Owned equally by intu and TH Real Estate intu’s 50% stake planned for sale to Northwood by end of 2020


External links

  • Archived official website (as of 24 October 2020)
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