intu sells 50% share in Derby mall in £186m deal
Shopping centre intu has sold a 50% stake in its Derby mall in a deal worth £186.3m.
Investment firm Cale Street, which is backed by London-based Kuwait Investmen Office will form a joint venture with intu to run the Derby venue.
The move comes just days after intu announced that it would look to offload some of its underperforming shopping centre stake. The firm posted a huge write-down of its assets with a loss of £1.17bn for 2018.
intu Derby has an annual footfall of 22 million. The 1.3 million sq ft centre was extended and redeveloped in 2007 and provides over 200 units and includes retailers such as M&S, Debenhams, Next, H&M, Sainsbury’s, Zara, Hollywood Bowl and Showcase Cinema de Lux.
intu will continue to manage the centre on behalf of the joint venture. intu says it will use the net proceeds of the transaction to repay debt.
Matthew Roberts, chief executive designate, said: “We are pleased to announce our new partnership with Cale Street and look forward to working with them at intu Derby.
“In what is a challenging investment market, this innovative transaction, which is in line with the December 2018 valuation, shows intu is delivering on its strategy of reducing loan to value through disposals and part-disposals. On a pro-forma basis, we expect the impact of this transaction to reduce our loan to value by around 1%.”