23rd Dec 2019 08:15
(Alliance News) - intu Properties PLC has agreed the EUR475 million sale of a shopping centre in Zaragoza, Spain, it announced on Monday.
intu has disposed of the Puerto Venecia centre to Generali Shopping Centre Fund SCS Sicav-SIF, for a total of EUR475.3 million. intu's share is EUR237.7 million, with the rest going to Canada Pension Plan Investment Board.
intu said the sale is part of its plan to "fix" the balance sheet, with the proceeds of the sale going towards reducing debt. The company had in November said it was in talks to sell three Spanish assets: Puerto Venecia, intu Asturias, and intu Xanadu.
Chief Executive Matthew Roberts said: "We are pleased to have successfully concluded this transaction and, as previously discussed, are at advanced stages of negotiations on the disposal of intu Asturias in northern Spain.
"As we announced at the interim results in July, our number one priority is fixing the balance sheet which includes creating liquidity through disposals. This transaction, which along with the part-disposal of intu Derby and other sundry asset sales in 2019 brings the year to date disposals total to GBP479 million."
intu has been facing significant problems of late, in part due to a significant weakening in the retail sector in the UK, where it owns sites such as the Lakeside and Trafford shopping centres.
In July, intu skipped its interim dividend and forecast a nearly 10% fall in rental income for 2019. It has already sold a number of assets this year to help reduce debt, much of which matures in the next few years.
Shares in London were 0.5% higher in early trade on Monday at 33.91 pence each but were down 1.0% higher in Johannesburg at ZAR6.28. They have lost 70% over the past 12 months in both markets.
By George Collard; [email protected]
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