JSE-listed‚ UK-focused property group Intu (ITU) on Friday morning confirmed a Thursday report in a regional newspaper that it is in talks to acquire half of a shopping centre near Birmingham it does not own for £410m.
Intu proposes to buy out its co-owner of Merry Hill shopping centre‚ Australian fund manager QIC.
“In response to media comment‚ Intu confirms that it is in advanced discussions with QIC regarding the potential acquisition of QIC’s 50% interest in Intu Merry Hill in the West Midlands. If the acquisition were to proceed‚ the consideration is likely to be around £410m and would be funded through a combination of new debt and existing resources‚” Friday’s statement said.
Midlands newspaper Express & Star reported on Thursday that Intu acquired half of the mall from Westfield two years ago for £403.8m.
“The deal also put Intu into the driving seat as manager of the 1.4-million square foot (about 427‚000m²) retail site‚” the paper said.
“Intu has already spoken of its plans for major improvements at Merry Hill.
“It has seen its half stake increasing in value since it was bought‚ with 22 new lettings over the last year. The company has said it aims to improve the tenant mix. There are around 213 stores and one aim is to combine some of the smaller units to create shops with bigger floor space. This is allowing Top Man/Top Shop to move into a bigger unit.”
