Struggling Trafford Centre landlord looking to raise £1bn to ease debts

Struggling shopping centre owner Intu has confirmed it is in talks to raise £1bn in a bid to ease its huge debts.

Speculation has been mounting that the firm which owns the Trafford Centre and the Arndale Centre is looking to launch a £1bn fundraising effort at the end of the month.

According to market reports Manchester property firm Peel is backing the move along with Honk Kong based Link Real Estate.

Bury businessman John Whittaker owns Peel and sold the Trafford Centre to Intu.

His firm is the largest shareholder in Peel and is keen for the fundraising to go ahead.

Intu issued a statement this morning confirming it is in talks with Peel.

The brief statement said: “Further to recent press speculation, intu properties confirms that it is engaged in constructive discussions with shareholders, including the Peel Group and others, and new investors including Link Real Estate Investment Trust and others, in relation to a proposed equity raise alongside intu’s full year results at the end of February.

“The company will make further announcements in due course, as appropriate. There can be no certainty that the equity raise will be implemented nor as to the terms on which any such implementation might occur.”

The company is struggling with a £4.7bn debt and its shares have plunged by nearly 90 per cent in the past year.

Manchester Arndale

There have also been two failed takeover bids from rival Hammerson and Peel.

However, private equity firm Orion is reportedly unlikely to back the fundraising effort.

In November Intu said fixing its balance sheet is its “number one priority”.

“We continue to consider all options to put us in the best position to deal with both our short and medium term liquidity requirements as we approach our next material debt maturity in early 2021,” the company said.

“These options include disposing of assets, where we are in the advanced stages of selling two of our Spanish assets, through to raising equity, which is also likely to form part of the solution.”

A statement in November warned that Intu is bracing itself for a sharp drop in rental income due to a wave of insolvencies.

Intu is due to publish its full year figures at the end of the month.