Intu posts huge loss following dramatic property revaluation

Troubled shopping centre owner Intu – the company which owns the Merry Hill shopping centre – has seen its losses widen dramatically after billions were wiped off the value of its property portfolio.

The company’s losses now stand at just over £2 billion, compared to around £1.2 billion 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.

Earlier this month, the firm said its troubles had come about due to “weak sentiment” rather than hard transactional evidence. Its share price promptly plummeted 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.