Trafford Centre and Lakeside owner Intu in desperate bid to raise £1bn
- Intu wants to kick off a rights issue as early as next month
- Intu has told the City it is considering a number of ‘self-help’ measures
- Intu’s shares have fallen by around 80% in the last year
Struggling shopping centre owner Intu Properties is planning to raise as much as £1billion in cash as early as next month.
Intu, which owns Manchester’s Trafford Centre and Lakeside in Essex, wants to kick off a huge rights issue alongside its annual results at the end of February or soon after.
In a rights issue, companies tap their existing investors for cash by offering them shares at a cheaper price, rather than looking for outside support.
Intu, which owns Manchester’s Trafford Centre (pictured), plans to tap investors for cash
Intu has told the City it is considering a number of ‘self-help’ measures.
In a trading statement last year it said it was ‘likely’ to raise more cash to balance its books – which are weighed down by a £4.7billion debt pile.
Intu’s shares have fallen by around 80 per cent in the last year as the High Street crisis has intensified and rental income has plunged.
Landlords have been hammered by a wave of insolvencies as tenants grapple with growing online sales and high business rates.
At its half-year results last July, Intu cut the value of its shopping centres by £1billion.