Member Article

Eldon Square shopping centre operator continues retail growth

Intu Properties plc, owner of North East shopping centres Eldon Square and the Metro Centre, has announced that its £1.2 million development pipeline programme is on track.

The recent Eldon Square mall upgrade was a key feature cited as a success in intu’s active management project, highlighted in a interim management statement released today (November 3).

The statement also revealed that there has been continued improvement in retailer demand with 71 new long term leases agreed for £13 million.

Key operating metrics were reported as stable, with year to date footfall up 1% and occupancy marginally reduced since 30 June 2014 at 95%.

Initiated asset management plans at the recently acquired intu Derby and intu Merry Hill with new lettings were noted as exceeding expectations.

The company has also successfully refinanced £453 million of existing bank facilities with £763 million of new facilities; also announced today a proposed further £350 million bond issue.

Moreover, increased overall headroom in terms of cash and committed facilities to over £750 million.

The company were also recognised for a 30 per cent like for like reduction in carbon emissions since 2011 winning the ‘Best in continuing carbon reduction’ category in the Carbon Trust Standard Bearers Awards

Chief executive, David Fischel, said: “We are pleased to see continued improvement in retailer demand for space, particularly evident in centres where we are undertaking investment and development projects.

“The benefits of last year’s rebranding as intu have been enhanced by further customer service and digital initiatives in the period.

“The balance sheet is in good shape strengthened by recent financing transactions and we have a wide range of organic growth opportunities with strong momentum in our £1.2 billion development pipeline.”

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