Manchester firm at the centre of £2bn takeover bid for shopping centre giant
Manchester based The Peel Group is at the centre of a £2bn deal which would create one of the largest property companies in the UK.
The Peel Group, which has its headquarters at the Trafford Centre, is part of a consortium which is considering the £2bn offer for shopping centre group Intu.
Intu owns 18 shopping centres across the country including the Trafford Centre and the Arndale.
The firm was the subject of a takeover bid by rival Hammerson earlier this year.
If the latest deal goes ahead it will create one of Britain’s biggest largest property companies with £21bn worth of assets across Europe.
The consortium’s consideration of the possible offer is at a preliminary and exploratory stage and no approach has been made to the board of Intu.
Earlier this year Hammerson withdrew its bid to buy the company in a deal that was valued at £3.4bn.
Peel Group went public on its bid last night in an announcement.
The firm is joining forces with the Saudi based Olayan Group and Canadian asset management company Brookfield.
The statement said: “The consortium’s consideration of the possible offer is at a preliminary and exploratory stage and no approach has been made to the board of Intu.”
Intu said it had not received an approach from the consortium, but added: “The board has formed an independent committee comprising all directors of Intu other than John Whittaker, who is connected to the consortium.”
“The independent committee will consider any approach from the consortium, if made, and a further announcement will be made if and when appropriate.”
The consortium has until November 1 to make a firm offer for Intu, whose share price fell 3.2% to 148.5p on Thursday before news of the potential bid was confirmed.
Peel Group, owns about 26% of Intu’s shares and the Olayan Group holds more than three per cent.
John Whittaker
Bury born John Whittaker, who is the chairman of Peel Group, became an investor in Intu after selling Manchester’s Trafford Centre for shares in the combined group.
Peel is one of the largest property investment companies in the country and The Trafford Centre was its first landmark project.
The Trafford centre was sold in 2011 to Capital Shopping Centres, now Intu, for £1.6bn making it the largest property acquisition in British history.
The transaction involved exchanging shares in The Trafford Centre for a shareholding in Capital Shopping Centres.
Other Peel projects include MediaCityUK, Liverpool John Lennon Airport, Doncaster Sheffield Airport, Gloucester Quays and Frodsham Wind Farm.
John Whittaker, maintains a 75% majority stake in the group, with the Olayan Group owning 25%. Peel is one of the main supporters of the Government’s vision to rebalance the country’s economy through the Northern Powerhouse.
Intu’s chief executive David Fischel, said in July he would leave the company, whose portfolio is valued at almost £10bn, after the failed takeover attempt by its larger rival Hammerson.
