Retail property giant Intu on Friday said talks with lenders had failed to reach an agreement to save it from falling into administration. Intu has until just midnight tonight to reach a deal, but in a statement this morning said “insufficient alignment and agreement has been achieved” and is now “likely” to appoint administrators, and that further announcement would be made as soon as possible.
Earlier this week Intu put KMPG on stand-by as administrators, as it warned that without critical upfront funding from its lenders “there is a risk that centres may have to close for a period”. The Lakeside, Metrocentre and Trafford Centre owner has been hoping to arrange a standstill agreement with lenders, and warned that a collapse of its business would place thousands of jobs at risk. The Intu group have nearly 20 shopping centres (most in the UK but several in Spain).
It has been a bad week for commercial landlords, including landlords who own retail properties, as they were paid just under 20% of the rent they were owed on Wednesday’s quarterly rent collection date.
