Intu Properties, the UK’s leading malls giant, has received a vital lifeline in the form of support from its creditors. IntuIntu SGS, a holding company of Intu Properties, has secured approval for proposals that aim to stabilize the finances of four of its shopping centers. These centers include Lakeside in Essex, Watford, Victoria Centre in Nottingham, and Braehead in Glasgow. The successful vote ensures the seamless continuation of operations at these malls and transfers control to a new management team.

Intu Properties has faced financial difficulties primarily due to its heavy debts and the challenges of sourcing additional funding amid the COVID-19 pandemic. Despite this, the company’s 17 malls, which operate under various subsidiary property firms, have managed to stay open and attract high-profile tenants.

The plan put forth by Intu SGS, which sought covenant waivers and interest deferrals, has received the green light from bondholders and lenders. This approval means that the company will have access to a new facility with a value of up to £30 million, allowing it to release withheld cash and improve operational liquidity.

Currently, the occupancy rates at the four malls stand at an impressive 92%, with over 90% of their units reopening. While Intu Properties maintains control of these shopping centers for now, control will be handed over to SGS by the end of the year. The asset management will be undertaken by Global Mutual, while Savills will serve as the property manager.

This vote of confidence from creditors, along with the injection of new funding, provides much-needed relief and a clear path toward stability for Intu’s malls. The new management team will likely prioritize attracting more tenants and enhancing the overall shopping experience to ensure the long-term success of these properties.

Useful links:
1. Intu Group – Our Shops
2. Savills