Shopping centres ‘resilient in challenging market’
Shopping centre operator intu has declared that “winning destinations drive a resilient performance in a challenging market”, although its Midlands sites have seen increases in their vacancy rates.
The group has 17 shopping centres, including Trafford Centre, Lakeside and the Metrocentre, and its vacancy rate – as measured by estimated rents rather than floor space – edged up from 3.2% in June 2017 to 3.4% last month.
Merry Hill, which is the subject of a £15m investment programme, had doubled to 6.6%, and Derby had trebled to 5.1%.
Nottingham’s Victoria Centre was one of only five sites to show an improvement, reducing its vacancy rate from 3.0% to 1.9%.
David Fischel, intu chief executive, said: “intu centres are in prime locations with high footfall and offer plenty of opportunities to increase density through additional mixed use developments.
“They have remained prime because we have always adapted and responded vigorously to the ever changing retail environment with continued investment and creative asset management satisfying the needs of retailers.”
The reduction in property values resulted in a total deficit of £650.4m, which sat behind the £503.4m loss recorded for the period.
Fischel blamed “a period of weakening sentiment in the retail market which has impacted prime shopping centre valuations” but highlight intu’s “resilient operational performance”.
intu’s three Midlands sites generate £90m a year in property income, with Merry Hill contributing £42.9m, Derby £27.9m, and the Victoria Centre £18.8m.
