Intu, a struggling owner of shopping centers in the UK, has recently filed for administration, which has raised concerns about the fate of its assets. The Canada Pension Plan Investment Board (CPPIB), reportedly the main creditor opposing Intu’s standstill agreement on its major debts, is now pushing for a quick sale of one of Intu’s prime assets – the Trafford Centre in Manchester.

The Trafford Centre holds significant value for Intu, making it a key asset in the company’s portfolio. With CPPIB now in control of its future, other lenders are left to navigate the complex organizational and borrowing structure of the company. The Sunday Times has reported that CPPIB is eager to sell the Trafford Centre and also questioned whether the remaining lenders will follow suit and quickly sell their respective assets or hire asset managers to oversee the malls.

If the lenders choose the latter option, it indicates that they may not be looking for a long-term commitment and instead are hoping for a recovery in the property sector. CPPIB has provided a loan of £250 million against the Northern England mall, which is valued at £1.7 billion. Additionally, the mall holds mortgage-backed securities worth £690 million.

CPPIB’s expectation is that the sale of the Trafford Centre will generate sufficient funds to cover the outstanding debts. The Sunday Times has also mentioned property tycoon John Whittaker as a potential bidder for the mall. Whittaker had previously sold the Trafford Centre to Intu in an equity deal in 2011.

The future of Intu and its assets remains uncertain, but the pressure to sell the Trafford Centre is increasing. A swift sale of this flagship property could serve as a crucial step in resolving Intu’s financial troubles and determining the company’s future direction.

For more information on the current state of Intu, you can visit the following links:

1. BBC News – Intu shopping centre owner collapses
2. The Guardian – Intu expected to enter administration after last-ditch talks fail