Shopping centre landlord Intu Properties has said footfall was up 1.2% across its estate for the period from 1 July to 25 October.
In an update to the market this morning the group also announced the sale of Intu Bromley Alaska Permanent Fund Corporation for £177.9m and the launch of an offering of £350m convertible bonds.
It said funds from the offering would be used to complete its committed pipeline of £212m worth of development in the next two years, including the 400,000 sq. ft. extension of Intu Watford. The company said it would also enable it to pursue further projects, such as the leisure extension at Lakeside, the redevelopments of Intu Broadmarsh in Nottingham and Barton Square at the Trafford Centre and the development of the Intu Costa del Sol shopping resort
It will also refinance the £101m drawn on the revolving credit facility for the £410m acquisition of the remaining 50% of intu Merry Hill in June 2016 and finance the identified asset management initiatives of £85m over the next two years to reposition it.
In its update, the company also said it was seeing active retailer demand – with 67 new long term leases agreed (61 in the UK and 6 in Spain) for £13m of new annual rent. Occupancy was 95.6% in the period, a reduction of 0.6% against June 2016 (96.1 per cent).
David Fischel, Intu chief executive, said: “We continue to demonstrate the attractiveness of our top quality prime shopping centres to shoppers, to retailers and to global investors, with increased footfall, good progress on lettings and rent reviews and the disposal of intu Bromley at a consideration above June 2016 market value. The business has a pipeline of attractive organic investment opportunities in both the UK and Spain which will enhance intu’s long-term growth potential.”
