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Creditors approve £30m investment for four Intu centres

Sadiyah Ismailjee
27 August 2020

The holding company for four Intu centres, Intu SGS has secured £30m of new investment and waivers on financial covenants for its four shopping centres, after its parent company Intu Properties fell into administration in June and failed to secure a waiver on its huge debts.

Intu SGS is the holding company for Intu Watford, Lakeside, Victoria Centre in Nottingham and Braehead in Glasgow.

Creditors of the company have approved a new super-senior facility of up to £30m and the release of previously withheld cash to boost its available liquidity.

In addition, creditors have approved waivers on particular events of default, such as financial covenants.

A spokesman for intu SGS said: "The positive vote today underlines the significant support we have from our creditors.

"The proposals that we have agreed today provide us with the stable financial platform to move forward as we continue to recover from the impact of Covid-19. Creditors have also agreed to inject up to £30 million of new money if required, in a further statement of support."

"intu continues to manage these four centres which continue their return to business as usual with 92 per cent occupancy and over 90 per cent of units now open and trading."

"Footfall continues to increase across all four centres with the stand-out performer being intu Braehead, which has almost returned to pre-pandemic levels, highlighting the continued attractiveness of these destination assets to visitors."

The four centres are currently at 92% occupancy with 90% of units now trading since the temporary closures during lockdown.

After parent company Intu Properties collapsed into administration at the end of June, the businesses appointed administrators from KPMG.

With guidance from administrator KPMG, Intu Properties continues to oversee the centres, although Intu SGS is planning to take control of its four assets with a full transfer expected later this year.

It has appointed Global Mutual to be asset manager of the four shopping centres and Savills as property manager once the transition is complete.


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