Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Mega-Mall Stake in Madrid Goes on Sale After Firm’s Collapse

Published 09/03/2020, 04:00 AM
Updated 09/03/2020, 05:09 AM
© Bloomberg. MADRID, SPAIN - JUNE 06: A general view of the main entrance of the shopping center on June 06, 2020 in Madrid, Spain. The Intu Xanadu Shopping Center is preparing with health security protocols to reopen next Monday, June 8. Spain has largely ended the lockdown imposed to curb the spread of Covid-19, which has caused the death of more than 27,000 people across the country. (Photo by David Benito/Getty Images)
CBRE
-

(Bloomberg) -- Intu Properties Plc’s stake in a major Madrid shopping center is being put up for sale as part of the collapsed U.K. landlord’s liquidation.

Administrators at KPMG have appointed broker CBRE Group Inc (NYSE:CBRE). to market Intu’s 50% share in the Xanadu mall, according to people with knowledge of the plan. No guide price has been set, said the people, who asked not to be identified because the information is private. The stake was valued at 233.8 million pounds ($311 million) in Intu’s 2019 annual report published in March.

Intu, owner of nine of the U.K’s top 20 shopping centers, fell into administration in June, buckling under the weight of a 4.5 billion-pound debt pile as the pandemic hit rents and shut off rescue options. The company had already agreed to sell off most of its Spanish holdings before the outbreak as it sought to raise cash and win a reprieve from lenders.

The U.K. firm bought the Xanadu mall, which boasts an indoor ski slope and about 220 stores, for 530 million euros ($626 million) in 2017, before selling a 50% stake in the property to Nuveen, the asset manager owned by the Teachers Insurance & Annuity Association of America.

Representatives of KPMG, CBRE and Nuveen declined to comment.

Investors have continued to buy up Spanish retail properties even as deals for U.K. malls collapsed. The country’s lower online retail sales and shorter, turnover-based lease terms have helped prop up rents and values. Spain has also bounced back from lockdown more quickly than the U.K., where shoppers have continued to stay away from stores in greater numbers.

That’s encouraged Intu’s administrators to push ahead with a sales plan for the Madrid mall, which is also less heavily indebted than most of the company’s other properties. Intu’s share was financed with about 131.5 million pounds of debt maturing in 2022 and was well within its borrowing limits at the last valuation, according to Intu’s accounts.

©2020 Bloomberg L.P.

© Bloomberg. MADRID, SPAIN - JUNE 06: A general view of the main entrance of the shopping center on June 06, 2020 in Madrid, Spain. The Intu Xanadu Shopping Center is preparing with health security protocols to reopen next Monday, June 8. Spain has largely ended the lockdown imposed to curb the spread of Covid-19, which has caused the death of more than 27,000 people across the country. (Photo by David Benito/Getty Images)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.