A who’s who of asset managers are being lined up to take over the running of intu’s shopping centres following the appointment of KPMG as administrator this afternoon.
Global Mutual is understood to have been lined up to take over the management of four malls – Lakeside in Essex, Watford, Braehead and Nottingham Victoria. British Land is lined up to take over the Trafford Centre in Manchester, Ellandi will take on Merry Hill in Birmingham, and Sovereign Centros the Metrocentre in Gateshead.
MG Real Estate, joint venture partner on the Mall at Cribbs Causeway in Bristol and the Manchester Arndale shopping centre, is expected to take on the running of both centres. Landsec will take on St David’s in Cardiff, Cale Street Partners will take on Derby, and APAM will take on intu Potteries in Stoke-on-Trent and Eldon Square in Newcastle.
Transfer agreements for the centres to ensure that they are able to stay open and operate during the administration process are expected to be announced shortly. The appointed asset managers will then manage the centres for the banks over the next three to six months.
Intu has been fighting for survival since early this year after failing to raise £1.5bn to shore up its finances. As a result of the coronavirus crisis it has seen its valuation continue to plummet as rental income declined, leading it to breach its debt covenants.
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