Embattled institutional landlord Intu has confirmed that discussions over an emergency recapitalisation with a Hong Kong-based investment fund have fallen through.
The landlord said this morning that discussions with Link Real Estate Investment Trust over a £1bn emergency cash call had collapsed and the Hong Kong-based firm had informed it of its intention to “no longer participate in a recapitalisation of the company”.
The owner of Lakeside shopping centre said it was still “engaged with shareholders and potential new investors in relation to a proposed equity raise” as it battles to offload £4.7bn in debt at a time when many of its core retail tenants are looking to cut costs and close stores.
Intu shares have plummeted 22.6% to just 13.4p per share. This time last year, Intu shares were worth £1.19.
Peel Group, which has a 27.3% stake in the business, is expected to continue to support the cash call but media speculation suggests private equity firm Orion is unlikely to be involved.
The landlord said it would make “further announcements in due course, as appropriate”.
At the end of January, Intu announced it had completed the sale of its Asturias shopping centre in Oviedo, Spain, to the ECE European Prime Shopping Centre Fund II for €290m (£245.1m).
The sale of Intu Asturias follows other disposals of Spanish assets including the shopping centre at Puerto Venecia in Zaragoza, which it agreed to sell in early January for €475.3m (£401.7m).
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