Broadmarsh redevelopment to be funded by £350m bond offering

The company which owns the Broadmarsh shopping centre in Nottingham has launched a £350m bond holding, the funds from which will be used to kick-off the long-awaited redevelopment of the mall.

In an announcement to the London Stock Exchange, intu properties said it was taking out an option to increase the bond offering by a further £50m.

The bonds will have a maturity date of 1 November 2022.

Intu says the expected stabilised initial yield on the project will be in the range of 6% and 10%.

In a separate third quarter trading update, the company said it remained on target to deliver growth in like-for-like net rental income for 2016 in the range of 3 to 4%.

“We expect this momentum to continue in 2017 with good progress on lettings and rent reviews,” it added.

Meanwhile, Nottingham City Council has started the search for a builder to redevelop the Broadmarsh shopping centre in Nottingham.

The Council is leading the procurement as a one third stake holder in the shopping centre with retail developer Intu holding the majority interest.

The value of the redevelopment is around the £80m mark and will involve demolition and reshaping of the centre while some shops continue to trade.

Martin Breeden, regional director of intu, said: “Our plans for intu Broadmarsh will build further on that progress, bringing new streetscapes, a new cinema and a wider retail and catering offer.

“We have been in the city for over 40 years with intu Victoria Centre and are fully committed to creating something special for Nottingham.”