£2.9bn intu deal collapses over ‘economic uncertainty’
A £2.9bn deal which would create the UK’s largest property firm has collapsed after a buying consortium pulled out of the deal citing ‘market volatility’.
Intu, the company which owns the Victoria and Broadmarsh centres in Nottingham and a mall in Derby, has been locked in talks with a consortium led by Manchester based Peel Properties.
The consortium, which also includes Saudi Arabia’s Olayan Group and Canadian property investor Brookfield Asset Management, is being led by Manchester businessman John Whittaker.
Under London Stock Exchange rules, the deadline for any deal to be done was 5pm tomorrow (30 November), but intu announced this morning that the deal was off, with the consortium saying: “Given the uncertainty around current macroeconomic conditions and the potential near-term volatility across markets, the Consortium is not able to proceed with an offer within a timeframe which is manageable within the confines of the Code timetable.”
intu had previously granted three extensions to the consortium.
Responding, intu said: “Whilst market sentiment towards retail and retail property remains negative, intu is confident of its commercial prospects which are underpinned by market leadership in UK regional shopping centres, clear focus on the highest quality assets and resilient operational performance in a challenging market.
“intu intends to continue to invest for the long term in its winning destinations to ensure they remain best in class and adaptable in an evolving retail environment.
intu says it is expecting a flat performance in rental income performance for 2019 of between 0 and 1%.
