Intu posts huge loss following dramatic property revaluation

Intu Victoria Centre
X The Business Desk

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Troubled shopping centre owner Intu – the company which owns the Broadmarsh and Victoria centres in Nottingham and part-owns Intu Derby – has seen its losses widen dramatically after billions were wiped off the market value of its property portfolio.

The company’s losses now stand at just over £2 billion, compared to around £1.2 billion in 2018. In a statement, Intu said the slump was largely due to the declining value of its assets. In 2018 its net assets amounted to £3.8 billion, but this figure has now decreased to £1.9 billion.

According to its latest results announcement, the market value of Intu’s investment and development property portfolio has declined from just under £9.2 billion to £6.6 billion.

Earlier this month, the firm said its troubles had come about due to “weak sentiment” rather than hard transactional evidence. Its share price then proceeded to plummet after it was forced to abandon a planned equity raise.

The company was looking to raise between £1 billion and £1.5 billion, but failed to muster enough support from shareholders to carry out the plan. The blow cast doubt over a £440 million credit facility which was dependent on Intu raising a minimum of £1.3 billion.

It also recently emerged that the market value of Intu Derby and Intu Victoria Centre has decreased dramatically, with the former now worth £77.3 million as compared to £372.5 million in 2018. The Nottingham centre was valued at £201 million at the year end, down from £261 million the previous year.

In a statement, the firm said that two thirds of the units at the Broadmarsh centre, which is currently being redeveloped, have either been exchanged or are in advanced negotiations. The status of the remaining third is as-yet unknown.