intu to be sold to Hammerson to create £21bn company
The owner of three shopping centres in Nottingham is to be sold for £3.4bn in a move that will create a £21bn company.
Hammerson, which owns the Highcross shopping centre in Leicester, is to buy intu – which owns the Victoria Centre and Broadmarsh malls in Nottingham, as well as the intu Derby centre.
In a statement released this morning, Hammerson said the deal will “create a pan-European portfolio of high-quality retail and leisure destinations, with enhanced exposure to high-growth markets and which will benefit from evolving consumer trends”.
Hammerson said that, as part of the deal, some properties would be sold, which would result in a £2bn windfall for the company.
The new company will be led by David Atkins, chief executive, and Timon Drakesmith, chief financial officer.
David Tyler, chairman of Hammerson, said: “This transaction will deliver real value for shareholders. The financial strength of the Enlarged Group and its strong leadership team will make it well-placed to take advantage of higher growth opportunities on a pan-European scale.”
David Atkins, chief executive of Hammerson, said: “This marks an exciting milestone in the history of Hammerson. Bringing together the high-quality portfolios of both companies establishes Hammerson as a larger, leading European retail REIT, enhances shareholder returns and supports opportunities for long-term growth. The acquisition creates a leading pan-European platform of desirable retail and leisure destinations which are better positioned to serve the needs of our retailers, excite our customers and support our partners and communities. I hold Intu’s high-quality centres in high regard and I look forward to working with a strengthened team to enhance the performance of our entire portfolio.”
John Strachan, chairman of Intu and proposed senior independent director of the enlarged group, said: “A combination of both Intu and Hammerson will create a more resilient, diversified and stronger group that we believe will benefit all our stakeholders. Intu offers high-quality retail and leisure destinations in the UK and Spain, which when merged with Hammerson’s own top-quality assets in the UK, in France and in Ireland, present a highly attractive proposition for retailers and shoppers in Europe’s leading cities. I am proud of the financial and operational success that Intu’s management team has delivered and pleased to see that the intu brand will continue.”
