Friday 18 October 2019

Retail centre owner Intu suffers loss


Intu CEO David Fischel
Intu CEO David Fischel

Shopping centre owner Intu has swung to an annual loss after suffering a collapse in the value of its properties in what it described as a "challenging" year.

The company had a torrid 2018 following two failed takeover attempts and amid tough trading conditions for retailers in the UK.

Rival Hammerson, which co-owns the Dundrum Town Centre, abandoned a £3.4bn takeover attempt last April, while a consortium led by John Whittaker's Peel Group pulled out of a £2.8bn bid in November.

Outgoing CEO David Fischel said that, in a "difficult year for the whole UK retail real estate sector and with very limited comparable transactional evidence, property valuations declined as sentiment weakened significantly". He said valuations fell 3pc in the final quarter of 2018, in addition to the 9pc decline over the first nine months.

Intu made a £1.17bn loss in 2018 after a £227.2m pre-tax profit the previous year.

PA Media

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