Shopping centre operator to introduce residential, office and hotel space
Intu, which owns the Broadmarsh and Victoria Centre malls in Nottingham and a half stake in a Derby shopping centre, says that the first half of 2019 has been “challenging” as it revealed losses of £830m.
The company says it is looking at diversification and has identified around 6,000 residential units across eight sites, seven potential hotel suits identified for around 800 rooms and eight office opportunities.
The firm says rental values have continued to fall across its outlets after a higher number of administrations and CVAs.
In a trading update released today (31 July), intu revealed that rental income across its estate has dropped by almost 18%. The firm, which sold half its stake in its Derby mall this year for almost £110m, said it was looking towards further disposals of its UK estate once demand returns.
On a local level, intu’s Victoria Centre in Nottingham lost 12% of its value over the period despite achieving 98% occupancy.
Meanwhile, intu said that two-thirds of the units in its Broadmarsh mall, which is undergoing redevelopment, are either exchanged or in “advanced negotiations”.
Matthew Roberts, intu chief executive, said: “We know radical transformation is required and have developed a new, ambitious five year strategy to reshape our business and address the challenges we face, with a priority to fix our balance sheet. With the people changes we have made, we now have the right leadership team in place with the appropriate skill sets to deliver this plan and drive the business forward.
“Regardless of current sentiment, one thing is clear: the physical store is not dying, it is evolving. The right store in the right location still plays a vital role in retailers’ multichannel strategies and we are starting to work with them as partners sharing the risks and rewards.
“Our centres will also transform as we turn them into thriving communities – places where people want to live, work and have fun, as well as shop.
“Change will not happen overnight, but I am confident we have the right plan in place and an energised, dynamic team to deliver it.”
