Profits fall at Intu as it plans next stage of Nottingham revolution

Intu, the owner of shopping centres in Derby and Nottingham, has seen its profits fall from £600m in 2014 to £518m for the year ending 31st December 2015.

The firm, which has recently completed a £42m refurbishment of the Intu Victoria in Nottingham, says it will now start on the wholesale redesign of the Broadmarsh mall in the city.

Meanwhile, the company has said that the market value of both Intu Derby and Intu Victoria has risen over the past year. Rent at the Intu Victoria have risen from £230 psf to £250 psf, whilst the value of the Derby operation has risen by 13 per cent.

David Fischel, chief executive, said: “We are pleased to report a strong set of results for 2015 with a 7 per cent increase in underlying earnings per share and a 4 per cent revaluation surplus taking investment properties to £9.6 billion. Particularly encouraging was the return to like-for-like growth in net rental income, the result of quality lettings in aggregate 10 per cent ahead of previous passing rent, improved occupancy at 96 per cent and benefits from our investment programme with projects successfully concluded in 2015 in Nottingham, Newcastle and Stoke-on-Trent.

“As economic recovery spreads out from London and the south east to the regions, consumer confidence is positive, driving improved retailer demand for space in our centres at a time when new supply of quality retail space is very limited. Investor interest for prime regional shopping centres remains keen.”