Intu, the shopping centre owner has warned that is now prepared to take ‘robust action’ to enforce the terms of its leases, after it accused some retailers of not engaging to find a consensual solution amid the fallout of the coronavirus pandemic.
The action comes as the landlord has agreed waivers on its revolving credit facility until 26 June 2020. Intu has also reached an agreement on interest rate swaps which had a mandatory break at the end of April.
The landlord has continued to collect rent and has now received 40% of the rent and service charges for the first quarter and is in “advanced discussions” with customers over 28% of rent due.
However, intu said: “There are a very small number of cases where customers are not currently engaging with us to find a consensual solution – these are large, well-capitalised brands who have the ability to pay but have chosen not to. In these instances, we are prepared to take more robust action to enforce the legally binding terms of those leases.”
On the waivers, Intu said: “We believe that these actions are another step forward that will allow us to extend our engagement to key stakeholders of the group at the asset level as we explore all options, including potentially seeking standstills to overcome the current market dislocations. This forms part of our ultimate strategic objective to fix the balance sheet over the medium term”
