Credit: intu
Ticker

intu: Statement on COVID-19 impact

Intu's three priorities are to look after its employees, to protect its business and to play its role in society.

All of intu’s centres in the UK and Spain are operating on a semi-closed basis. In line with the latest Government advice in both countries, only essential stores, such as supermarkets, pharmacies and banks, remain open.

Rent for the second quarter of the year in the UK was due on 25 March (the quarter day) and intus has received 29 per cent of this. Intu is in discussions with their customers on the outstanding rents. For the same period last year, they had received 77 per cent on the quarter day.

As at 24 March 2020, intu had immediately available cash and facilities of £184 million at the corporate level. The impact of COVID-19 in Europe is delaying certain regulatory approvals in relation to the disposal of intu Puerto Venecia and intu now expects the £95 million proceeds to be received in the middle of May at the earliest.

Intu has significantly reduced capital expenditure for the foreseeable future and is cutting back on head office costs to maintain additional cash within the business. In addition, to support their customers, they have initiated a programme of reducing non-essential service charge costs and are passing on these savings to them.

The reduced social activity is likely to continue for the foreseeable future impacting intu’s footfall and potential future rents. The impact of the reduced rents received is expected to require them to seek covenant waivers and they are in constructive discussions with the relevant lenders.

In addition to the immediate actions intu has taken to preserve liquidity, they have an ongoing dialogue with the UK Government and may look to access their £330 billion support package. In their recent announcement for the protection of commercial tenants from the non-payment of rent, they also stated that they are actively monitoring the impact of this on commercial landlords’ cash flow. Other Government measures announced of business rates suspension, employee cost support and tax payment deferrals, are also expected to have a positive impact.

Given the ongoing uncertainty around COVID-19, intu is no longer able to provide guidance in relation to the 2020 financial year.

In these difficult times intu continues to assess all strategic alternatives and will provide further updates as appropriate.

Sign up for our ACROSS Newsletter. Subscribe to ACROSS Magazine.

Ticker MORE

Titanium acquires Ozols shopping center in Riga

The asset was exited by KS Holding to Titanium Baltic Real Estate. The former shopping center Galerija Azur was acquired by the seller in 2016 and redeveloped over three years, then opened under the new name Ozols.

Coniq develops new loyalty programs for Reem Mall in Abu Dhabi

Coniq announced their partnership with Reem Mall (Abu Dhabi) to develop innovative engagement and loyalty programs for unique customer journeys backed by the latest data science, especially for the GCC market.

FCR buys 26, 000 sq m shopping center in Eisenach

FCR Immobilien AG has acquired a shopping center in Eisenach, Thuringia, with a sales area of approximately 26,000 sq m as part of the continuous expansion of its portfolio.

Debenhams.com opens first UK store in Manchester Arndale

Manchester Arndale announced that fashion retailer Boohoo has opened its first Debenhams.com beauty store at the center.

Trafford Center launches Tinsel Town outdoor experience for festive period

Manchester’s Trafford Centre created a festive outdoor experience with Tinsel Town, following the recent Summer Social and Spookfest events.

400th Primark store opens in Italy

Primark opened its 400th international store in Sicily (Italy) today, which now totals eight fashion outlets in their Italian portfolio.