Joint Venture

Intu Properties plc - Joint Venture

PR Newswire

London, May 26

LEI: 213800JSNTERD5CJZO95

Regulated Information Classification: Additional regulated information required to be disclosed under the laws of a Member State of the EU

PRESS RELEASE

30 MAY 2017

INTU PROPERTIES PLC AND TH REAL ESTATE ANNOUNCE THE CREATION OF A NEW JOINT VENTURE FOR MADRID Xanadú SHOPPING CENTRE

intu properties plc (‘intu’) and TH Real Estate – on behalf of its pan-European investment vehicle, the European Cities Fund – have agreed to form a joint venture to own Madrid Xanadú shopping centre in Spain.

Madrid Xanadú shopping centre is the retail and leisure destination for the south-west of Madrid and one of the top ten shopping centres in Spain. The centre, which opened in 2003, has an annual footfall of 13 million customer visits and an annual net rental income of €23 million.

The centre provides around 220 retail, catering and leisure units. The two level retail mall includes key retailers such as El Corte Ingles, all of the Inditex fascias, Primark, H&M, Apple and Mango. In addition there is a strong leisure offering with SnowZone, Spain’s only indoor ski slope, a 15 screen Cinesa cinema and Ilusiona bowling. This will be enhanced by an aquarium and Nickelodeon indoor theme park which are under development.

intu acquired Madrid Xanadú in March 2017 stating at the time that it would look to introduce an investment partner. TH Real Estate will acquire a 50 per cent interest in the joint venture, which includes the centre and the SnowZone business but excludes the management company, for a price of €264.4 million (50 per cent of the price paid by intu to entities of the Ivanhoé Cambridge Group) before net debt, working capital and other adjustments. intu will use the net proceeds of the transaction to repay debt on its revolving credit facility. The joint venture arrangements provide that intu will continue to be the manager of the centre. The closing of the transaction is subject to certain completion conditions including regulatory approvals.

David Fischel, intu Chief executive, commented:

“We are pleased to announce our new partnership with TH Real Estate and we look forward to working together on a number of compelling active management opportunities to enhance and strengthen Madrid Xanadú’s market position and offering.”

ENQUIRIES

ABOUT INTU

intu is the UK's leading owner, manager and developer of prime regional shopping centres with a growing presence in Spain.

We are passionate about creating uniquely compelling experiences, in centre and online, that attract customers, delivering enhanced footfall, dwell time and loyalty. This helps our retailers flourish, driving occupancy and income growth.

We own many of the UK's largest and most popular retail destinations, including nine of the top 20, with super regional centres such as intu Trafford Centre and intu Lakeside and vibrant city centre locations from Newcastle to Watford.

We are focused on four strategic objectives: optimising the performance of our assets to provide attractive long term total property returns, delivering our UK development pipeline to add value to our portfolio, leveraging the strength of our brand and seizing the opportunity in Spain to create a business of scale.

We are committed to our local communities, our centres support over 120,000 jobs representing about 4% of the total UK retail workforce, and to operating with environmental responsibility.

Our success creates value for our retailers, investors and the communities we serve.