Intu in £250m deal for Midsummer Place shopping centre
Wednesday 27 February 2013
The UK's biggest shopping centres owner has expanded its empire as it shrugged off a year of falling rents and visitors to its centres.
Intu Properties, formerly known as Capital Shopping Centres, is spending £250.5m to buy Milton Keynes' Midsummer Place as it seeks to plug a gap in its regional portfolio, tapping markets for the cash with a share placing.
The shares fell 9p to 333.9p as it said it will place up to 86 million shares, or 9.9 per cent of its share capital, at 342.9p each to help fund the deal.
The company already owns 14 shopping centres.
Intu, which is spending £25m on rebranding all its centres under its new name, launching free wi-fi for shoppers and investing £1bn in its centres over the next 10 years – saw the value of its £7bn portfolio edge higher last year.
But Intu's net rental income dipped by 2.7 per cent last year as the company bore the brunt of retail failures such as La Senza and Game, while customer footfall at its shopping centres fell for the first time in three years.
Intu's chief executive, David Fischel, who stressed the company is still outperforming the industry, said occupancy remained high at 96 per cent as the group managed to re-let most of the vacant units.
"In this economic climate tenant failures are part and parcel of the business," he added.
- 1 Planes go hybrid-electric in important step to greener flight
- 4 Hip hop is both racial and political, and for Iggy Azalea to suggest otherwise is insulting
- 5 Man hospitalised with pneumonia after downing eggnog at office Christmas party
Antonio Martin shooting: Black teenager may have tried to ambush patrolman, says police officer's lawyer
Orphan kangaroos spend Christmas without their parents
Northern Lights above Britain: Stunning Aurora Borealis illuminates Northumberland sky on Christmas Eve
New route to Mars could make manned mission much cheaper and easier
Isis 'did not shoot down Jordan war plane' before capturing pilot, says US
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Alex Salmond has 'broken his word to the Scottish people' says Scottish Lib Dem leader
iJobs Money & Business
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...