Owner of Trafford Centre and Arndale to be sold for £3.4bn

Trafford Centre

Intu, the owner of Manchester’s Trafford Centre and Arndale shopping complexes, is to be sold for about £3.4bn in a move that will create a £21bn company.

London-based property development and investment company Hammerson said the deal will “create a pan-European portfolio of high-quality retail and leisure destinations, with enhanced exposure to high-growth markets and which will benefit from evolving consumer trends”.

Hammerson said that as part of the deal some properties would be sold, which would result in a £2bn windfall for the company.

North West-based property giant Peel, a shareholder in Intu, will hold a 15% stake in the enlarged company.

Intu currently owns a total of 17 shopping centres across the UK.

David Tyler, chairman of Hammerson, said: “This transaction will deliver real value for shareholders. The financial strength of the enlarged group and its strong leadership team will make it well-placed to take advantage of higher growth opportunities on a pan-European scale.”

David Atkins, chief executive of Hammerson, said: “This marks an exciting milestone in the history of Hammerson.

“Bringing together the high-quality portfolios of both companies establishes Hammerson as a larger, leading European retail REIT, enhances shareholder returns and supports opportunities for long-term growth.”

John Strachan, chairman of Intu and proposed senior independent director of the enlarged group, said: “A combination of both Intu and Hammerson will create a more resilient, diversified and stronger group that we believe will benefit all our stakeholders.

“Intu offers high-quality retail and leisure destinations in the UK and Spain, which when merged with Hammerson’s own top-quality assets in the UK, in France and in Ireland, present a highly attractive proposition for retailers and shoppers in Europe’s leading cities.

“I am proud of the financial and operational success that Intu’s management team has delivered and pleased to see that the intu brand will continue.”

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