British Intu to sell 50% shopping centre stake to Kuwait-backed fund

British Intu to sell 50% shopping centre stake to Kuwait-backed fund
The transaction is part of Intu’s plans to reduce its debts

Mubasher: UK-based Intu Properties seeks to sell a 50% stake in Derby shopping centre to Cale Street Investments at a value of GBP 186.3 million ($243 million).

The transaction is part of Intu’s plans to reduce its debts, Reuters reported citing a company statement.

Cale Street Investments is backed by Kuwait Investment Authority (KIA), the GCC nation’s sovereign wealth fund.

Intu’s debts to assets rate reached 53.1% by the end of 2018, compared to 45.2% a year ago, according to the company’s latest annual report.

The British shopping centre operator eyes brining its debts down 50%.

“While expected, the transaction provides some confidence in Intu’s ability to dispose of assets in what is a tough backdrop for retail assets – at a price which is supportive of current valuations,” analyst at Liberum James Ashley told Reuters.

Intu chief executive Matthew Roberts projects the proceeds of the deal to help his company slash loan to value by around 1%.