5th Jun 2019 12:41
LONDON (Alliance News) - Landlords of troubled retailer Arcadia Group Ltd are expected to clash over restructuring proposals, the Financial Times reported on Wednesday.
Arcadia owns high street clothing retailers Burton, Dorothy Perkins, Evans, Miss Selfridge, Topman, Topshop, Wallis and the out of town chain Outfit, which sells lines from the other group chains.
According to people briefed on plans, real estate investment trust British Land Co PLC is expected to vote in favour of Arcadia's company voluntary arrangement in a meeting later in the day, which will see rent cuts and the closure of more than 30 store closures.
Arcadia currently accounts for 1.5% of British Land's rent roll.
British Land's vote is said to follow concessions negotiated by investment bank PJT Partners on behalf of a group of landlords, including better terms on lease breaks.
However, the Financial Times reported that shopping centre operator intu Properties PLC, is expected to vote against the proposals, on the grounds that the rent cuts "would not sit well with full rent-paying tenants".
Intu currently holds 35 Arcadia units, which comprises 4% of its rent roll.
Other landlords that will vote in the meeting includes M&G Real Estate and Hammerson PLC.
https://www.ft.com/content/425bfc2e-877e-11e9-a028-86cea8523dc2
Shares in British Land were up 1.7% at 536.00 pence. London listed shares in intu shares were 0.6% higher at 89.30p, while Johannesburg shares were up 1.1% at ZAR16.77 on Wednesday.
Related Shares:
British LandHammersonINTU.L