by Steve Millington
Recently I was invited by You and Yours, BBC Radio 4’s daily consumer show, to talk about the problems facing INTU, owners of 17 shopping centres, including some of the UK’s largest malls, such as the Metrocentre and Trafford Centre. The interview took place a few days before lockdown, inside an already near deserted Trafford Centre, a mall that normally attracts over 31 million visitors a year.
INTU’s revenue decreased by £38.8 million in 2019 to £542.3 million. A reduction in rent receivable from the impact of CVAs and administrations, and increased vacancy appear to be the main drivers, leaving INTU with £4.5 billion debt. Whereas, in 2011, few questioned Capital Shopping Centres (INTU’s parent company) purchase of the Trafford Centre for £1.6b (at the time the UK’s largest ever property deal), given that by 2015 its market value had risen to £2.2b. However, according to the London Stock Exchange, by December 2019 its value had fallen to less than £1.7b.
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