Landlord Intu Warns Equity Raising Is ‘Likely’

The indebted shopping centre landlord Intu said it was “likely” to have to raise fresh equity after a string of retailer insolvencies hit the group harder than expected, the Financial Times reported. Intu, whose largest shareholder is the property billionaire John Whittaker, said in a trading update that like-for-like rental income for 2019 would drop about 9 per cent from the previous year, and would continue falling in 2020. More than half of this year’s decline resulted from company voluntary arrangements — a form of insolvency deal — by retailers such as Arcadia and Monsoon, Intu said. The group owns shopping centres such as Manchester’s Trafford Centre and the Lakeside centre in Essex. Shares in the company had plunged 14.5 per cent by mid-morning on Wednesday, to 34.4p. They had already been trading at an 80 per cent discount to net asset value, according to analysts at Numis. Read more