Shopping centre operator, Intu has announced it will lower its service charges for tenants by 22% in the second half of the 2020 financial year, providing an 11% reduction for the full year, due to retailers and businesses facing challenges caused by the Coronavirus outbreak.
The business, which owns sites such as the Trafford Centre in Manchester and Lakeside in Essex said it embraced the business rates holiday announced by the government, but “more support was needed” for companies.
A company’s spokesperson said in an email to Reuters: “We will continue to do all we can for the brands who rent with us whilst also ensuring that any concessions we make are not to the detriment of our own financial position as we look to address our balance sheet issues.”
On 12 March, Intu feared of a potential collapse after the business announced its annual losses nearly doubled to £2 billion in 2019, due to a big decrease in the value of its shopping centres.
Revenue fell by 6% to £542.3m as tenant shops negotiated lower rents or simply fell into administration.
According to GlobalData, Intu owns 9 of the UK’s most top-20 shopping centres, with an average 1 million people a day visit one of the company’s centres.