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Mon May 25 2020

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Another Intu rescue deal fails

29 Nov 18 A rescue deal for struggling shopping centre owner Intu has collapsed.

Intu properties include the Lakeside Shopping Centre in Essex
Intu properties include the Lakeside Shopping Centre in Essex

Takeover talks between Intu and a consortium comprising Peel Group, Olayan Group and Brookfield Property have come to an end.

Intu has been hit by declining footfall on the high street and the failure of major retailers in recent years.

Intu’s portfolio of shopping centres includes Lakeside Thurrock, Merry Hill in Dudley, the Gateshead Metrocentre and the Trafford Centre in Manchester.

Rival developer Hammerson scrapped plans for a £3.4bn takeover in April 2018, citing deteriorating market conditions.

Peel and Olyan already own nearly 30% of Intu and teamed up with Brookfield to put together a £2.8bn deal, revealed in October. However, after due diligence procedures, the offer has now been withdrawn.

"The consortium is highly appreciative of the cooperation shown by Intu's board of directors and management team over the past six weeks," the would-be buyers said. "However, given the uncertainty around current macroeconomic conditions and the potential near-term volatility across markets, the consortium is not able to proceed with an offer within a timeframe which is manageable within the confines of the [City Code on Takeovers & Mergers] timetable.

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