Intu has sold a 50% stake in its Intu Derby shopping centre to Cale Street Investments, an investment firm backed by the Kuwait Investment Office, in deal worth £186 million. The two companies have established a 50/50 joint venture for the shopping centre.
Situated in the centre of Derby, Intu Derby is a key retail and leisure destination in the East Midlands, with an annual footfall of 22 million. Spanning 1.3 million square feet, it was extended and redeveloped in 2007 and is home to brands such as M&S, Debenhams, Next, H&M, Sainsbury’s, Zara, Hollywood Bowl and Showcase Cinema de Lux. The transaction forms part of Intu’s strategy of reducing its debt to assets ratio through disposals, part-disposals and introducing partners to assets. Intu will continue to manage the centre on behalf of the joint venture.
Matthew Roberts, Intu chief executive designate, said: “We are pleased to announce our new partnership with Cale Street and look forward to working with them at intu Derby. In what is a challenging investment market, this innovative transaction, which is in line with the December 2018 valuation, shows intu is delivering on its strategy of reducing loan to value through disposals and part-disposals. On a pro-forma basis, we expect the impact of this transaction to reduce our loan to value by around one per cent.”