Retail property giant Intu intends to raise new equity as it seeks to fix its balance sheet.

The retail property giant, which owns shopping destinations such as Manchester’s Trafford Centre and Lakeside in Essex, said the fundraising would accompany its full-year results at the end of next month.

Intu made a statement on its financing plans following a Sunday Times story yesterday that said the shopping centre owner wanted to raise £1bn, which would test investor appetite for retail property after a year that saw landlords suffer in the wake of insolvencies.

“We have delivered a robust operational performance for 2019, finishing with a busy Christmas trading period. Total footfall in 2019 was 0.3% ahead of 2018, flat in the UK, which significantly outperformed the Springboard footfall monitor for shopping centres.

Chief executive Matthew Roberts said occupancy was stable at 95% and that 97% of rent has been collected for the first quarter, ”demonstrating the lower risk of our existing customer base”.

Roberts maintained: “We are making good progress with fixing the balance sheet, our number one priority, and are confident we have the right strategy in place to enable us to prosper as we see continued polarisation between the best destinations and the rest.

Action already taken by Intu includes the exchange of contracts for the sale of Spanish centre Intu Puerto Venecia for €475m, the net proceeds of which will be will be used to repay debt, and approximately £500m of disposals last year.  

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