Intu could lose control of Victoria Centre

The bondholders of debt secured against four intu shopping centres – including the Victoria Centre in Nottingham – are considering taking control of the assets, according to reports.

React News says that a restructuring firm has been appointed and that alternative asset managers are being considered.

The other centres reportedly involved in the move at Lakeside, Braehead and Watford.

The move comes ahead of intu’s June revaluation date and with another quarter date looming at the end of that month.

Last month (March) – and before lockdown was imposed in the UK – intu revealed losses of just over £2bn, compared to around £1.2bn 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.

Apparently bondholders of debt secured on #intu Lakeside, Braehead, Watford, Victoria Centre preparing to take control of assets.

Earlier in the 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.

intu has been contacted for comment.