Hedge fund which cashed in on collapses of a string of high-profile companies bets against embattled shopping centre owner Intu

London-based Kite Lake Capital took out a short position in shopping centre owner Intu

London-based Kite Lake Capital took out a short position in shopping centre owner Intu

A hedge fund which cashed in on the collapses of a string of high-profile companies has bet against embattled shopping centre owner Intu Properties.

London-based Kite Lake Capital took out a short position in the owner of the Trafford Centre in Manchester and Lakeside in Essex earlier this month, according to FCA data.

Intu is struggling to raise £1billion to trim its £4.7billion debt pile despite having a market value of just £165million.

Last week, Hong Kong investor Link Real Estate Investment Trust pulled out of a deal to lead the fundraise. 

Intu claims to be optimistic that it can raise the funds and its largest shareholder Peel Group is said to be supportive.

Kite Lake, whose bet against Intu is worth about £1.1million, is a small hedge fund which launched in 2010.

It has ‘shorted’ shares in tour operator Thomas Cook, construction giants Carillion and Interserve, and oil firm Afren, making millions of pounds as each went to the wall.

Short-selling is when investors borrow shares, sell them, buy them back for a lower price, then return them to the original owner for a profit.

Others betting against Intu include Brexiteer Crispin Odey, whose hedge fund has a short position accounting for more than 3 per cent of the firm.

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Intu declined to comment. Kite Lake did not respond to requests for comment.



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