|Delayed - 10/29 06:52:19 am|
CSI takes full control of Intu Derby shopping centre
|09/09/2020 | 11:06am|
Joint administrators of Britain's Intu Properties said on Wednesday Cale Street Investments (CSI) has taken full ownership of the company's Derby shopping centre, the first in the Intu portfolio to change hands after it went into administration.
CSI, an investment firm backed by the Kuwait Investment Office, paid 186.3 million pounds last year for a 50% stake in the shopping centre, located on the East Midlands.
The centre, which is among 17 in the Intu portfolio with over 200 retailers including Next, Zara, H&M M&S and Hugo Boss, will be led by real estate advisory firm Savills and former Capital & Regional executive Ken Ford.
The coronvirus crisis left retailers struggling to pay rents, hitting the last nail in the coffin for Intu, which was already struggling with a heavy debt, as many High Street retailers including Debenhams and House of Frasers went under.
Intu, the owner of Manchester's Trafford Center and Lakeside in Essex, was placed in administration in June after it failed to reach a deal with its lenders.
"We continue to engage in constructive discussions with the management teams at the other Intu propcos regarding their respective migration plans," Jim Tucker, partner at KPMG and joint administrator of Intu, said.
Rival Hammerson, which had attempted to buy Intu for 3.4 billion pounds two years ago, last month set out plans to raise 825 million pounds to weather the global health crisis.
(Reporting by Samantha Machado and Muvija M in Bengaluru; Editing by Vinay Dwivedi)