Intu Properties’ investment programme sees continued growth in UK and Spain

Intu Properties, the British Real Estate Investment Trust (REIT), has performed strongly during the period for July 1st until November 6th.

Intu Properties is currently on target for a return to like-for-like net rental income growth for the year as a whole (H1 2015: -1%) through improved lettings and rising occupancy.

During this period, the company saw an improvement in retailer demand with 84 new long term leases agreed for £18m of new annual rent, 11% above previous passing rent and in line with valuation assumptions.

Occupancy increased by 40 basis points since 30 June 2015 to 95.5%, and Intu’s year-on-year footfall to date is marginally up in the UK and up 5% in Spain, both outperforming their Experian benchmarks.

As for the UK, the company’s development pipeline is on track with £60m of developments completing at intu Victoria Centre and intu Potteries, where the cinema and restaurants are fitting out for their scheduled openings in December 2015.

In addition, catering developments at intu Metrocentre, intu Eldon Square and intu Bromley are creating over 30 new restaurants.

Intu also completed the introduction of CPPIB as its partner at Puerto Venecia, Zaragoza, extending its partnership to two of Spain’s top ten shopping centres and releasing €113m of funds for further projects.

The company also has cash and available facilities of over £550m, with a debt to asset ratio of 44% as of 30 September 2015.

David Fischel, Chief Executive, commented: “The economic recovery is now more obviously rippling out from London and the South East to other regions of the UK and our prime centres across the country are seeing strengthening underlying retailer sales performance

“As this translates into improved demand for space and rising occupancy, we look forward to a return to like-for-like net rental income growth for 2015 and are well positioned for a more meaningful uplift next year.

“We have successfully completed development projects in Nottingham and Stoke-on-Trent in the period and our investment programme continues to gather momentum both in the UK and Spain.”

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