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The Markets
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The Markets
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Real Estate

Intu Properties' rental payments slump as coronavirus lockdown takes effect

Intu has received just 29% of its expected rent for the second quarter compared to 77% this time a year ago.

Embattled shopping centre owner Intu Properties PLC (LON:INTU) is having to renegotiate its bank covenants as footfall and rents at its sites slump in the coronavirus crisis.

All its centres in the UK and Spain are operating on a semi-closed basis with only essential stores open.

The Trafford Centre and Lakeside owner has received just 29% of its expected rent for the second quarter compared to 77% this time a year ago.

In addition, cash from the sale of its Puerto Valencia shopping centre in Spain has also been delayed.

The £95mln proceeds will now not come through until mid-May at the earliest.

The former FTSE350 member was already in serious financial trouble after a planned emergency fundraise of £1.5bn fell though at the start of March.

Intu had cash and debt facilities of £184mln at the start of the week and has cut back capital expenditure and head office costs, while to help tenants it is reducing non-essential service charge costs.

Intu is looking to the government’s £330bn support package to help its commercial tenants pay.

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