Search
Regulatory Story
Company Intu Properties PLC
TIDM INTU
Headline Intu Derby Joint Venture
Released 07:00 18-Apr-2019
Number 6009W07

RNS Number : 6009W
Intu Properties PLC
18 April 2019
 

           

 

18 APRIL 2019

INTU PROPERTIES PLC AND CALE STREET INVESTMENTS LP ANNOUNCE CREATION OF A 50/50 JOINT VENTURE FOR INTU DERBY

 

intu properties plc ('intu') and Cale Street Investments LP ('Cale Street'), an investment firm backed by the Kuwait Investment Office, London, are pleased to announce the establishment of a 50/50 joint venture for the intu Derby shopping centre.

Cale Street will acquire for cash the 50 per cent interest for consideration which values their share of the property at £186.3 million, before taking account of senior debt finance and customary working capital adjustments. This structured equity transaction includes a prioritisation waterfall for distributions to the joint venture partners.

The consideration for the 50 per cent interest is in line with the valuation at 31 December 2018 of £372.5 million (100 per cent), which represents a net initial yield of 6.6 per cent. The net rental income of the property was £25.2 million for the year ended 31 December 2018.

intu Derby is located in the centre of Derby and is a key retail and leisure destination in the East Midlands, with an annual footfall of 22 million. The 1.3 million sq ft centre was extended and redeveloped in 2007 and provides over 200 units and includes key retailers such as M&S, Debenhams, Next, H&M, Sainsbury's, Zara, Hollywood Bowl and Showcase Cinema de Lux.

intu will continue to manage the centre on behalf of the joint venture. The closing of the transaction will be subject to completing senior debt finance, the discussions for which are well advanced, and certain other completion conditions.

The transaction further advances intu's stated strategy of reducing its debt to assets ratio through disposals, part-disposals and introducing partners to assets. Following the joint venture financing process, intu will use the net proceeds of the transaction to repay debt.

 

Matthew Roberts, Chief Executive Designate, commented:

"We are pleased to announce our new partnership with Cale Street and look forward to working with them at intu Derby.

In what is a challenging investment market, this innovative transaction, which is in line with the December 2018 valuation, shows intu is delivering on its strategy of reducing loan to value through disposals and part-disposals. On a pro-forma basis, we expect the impact of this transaction to reduce our loan to value by around one per cent."



 

ENQUIRIES

intu properties plc

Matthew Roberts

Chief Executive Designate

+44 (0)20 7960 1353

Adrian Croft

Head of Investor Relations

+44 (0)20 7960 1212


 

Public relations

UK:

Justin Griffiths, Powerscourt

+44 (0)20 7250 1446

SA:

Frédéric Cornet, Instinctif Partners

+27 (0)11 447 3030

 

 

NOTES FOR EDITORS

About intu

intu owns and manages some of the best shopping centres, in some of the strongest locations, in the UK and Spain.

Our UK portfolio is made up of 17 centres, including eight of the top-20, and in Spain we own three of the country's top-10 centres, with advanced plans to build a fourth.

We are passionate about creating compelling experiences, in centre and online, that make our customers smile and help our retailers flourish.

We attract around 400 million customer visits and 26 million website visits a year offering a multichannel approach that truly supports retail strategies.

Our strategic focus on prime, high-footfall flagship destinations, combined with the strength and popularity of our brand, means that intu offers enhanced footfall, dwell time and loyalty. This helps our tenants flourish, driving occupancy and income growth.

We are committed to our local communities, with our centres supporting nearly 130,000 jobs (representing about 3 per cent of the total UK retail workforce), and to operating with environmental responsibility. We have already met or exceeded a significant number of our 2020 environmental targets.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
JVESFMSIAFUSELL
London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.