Property consortium lines up £2bn bid for intu

intu Victoria Centre

A consortium of property companies is eyeing a bid for shopping centre operator intu, which owns the Victoria and Broadmarsh centres in Nottingham and a mall in Derby, in a deal that would value the company at around £2bn.

The consortium is made up of The Peel Group, Olayan Group and Brookfield Property Group, and includes intu director John Whittaker who already owns 27% of the company.

In a statement made to the London Stock Exchange, the consortium said: [The group] note the recent press speculation and confirm that the consortium is in the preliminary stages of considering a possible cash offer or the issued (and to be issued) share capital of Intu not already owned by members of the consortium.

“The consortium’s consideration of the possible offer is at a preliminary and exploratory stage and no approach has been made to the Board of Intu.

“There can be no certainty that any transaction will ultimately be forthcoming, nor can there be any certainty as to the terms of any such transaction.”

intu also issued a statement yesterday evening, that said: “intu notes the statement by the Peel Group, the Olayan Group and Brookfield Property Group in relation to a possible offer by the consortium for intu.

intu confirms that it has not received an approach from the consortium. The Board of intu has formed an independent committee comprising all directors of intu other than John Whittaker, who is connected to the consortium. The independent committee will consider any approach from the consortium, if made, and a further announcement will be made if and when appropriate.”

The news throws fresh doubts on the timeline for the intu Broadmarsh redevelopment in Nottingham, and comes six months after Hammerson withdrew its offer to acquire rival Intu, which would have created a £21bn company.

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