intu
{{Short description|United Kingdom-based real estate investment trust}}
{{Use dmy dates|date=June 2019}}
{{Infobox company
| name = Intu Properties plc
| logo = Intu properties plc.png
| logo_size =
| logo_caption = Intu logo since 2013
| type = Public limited company
| former_name = Liberty International plc
Capital Shopping Centres Group plc
| trade_name = Intu Group
| traded_as = {{flat list|
- {{LSE|INTU}}
- {{jse|ITU}}
}}
| industry = Property
| fate = Administration then closure
| successor = Intu SGS
| foundation = {{start date and age|df=yes|1980}}
(as Liberty International)
| founder = Donald Gordon
| defunct = {{End date and age|2020|06|26|df=yes}}
| location = London, United Kingdom
| area_served = United Kingdom, Spain
| key_people = John Strachan
(Chairman)
John Whittaker
(former Deputy Chairman)
Matthew Roberts
(former Chief Executive Officer)
| products = Investment and development of shopping centres and other commercial property
| services =
| revenue = £542.3 million (2019){{cite web |url=https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/INTU/14457775.html|title=Results for year ended 31 December 2019 |publisher= London Stock Exchange RNS |access-date=16 March 2020}}
| operating_income = £(1,542.7) million (2019)
| num_employees =
| parent =
| divisions = Intu List of Properties
| subsid = Intu SGS
| homepage =
}}
Intu Properties plc was a British real estate investment trust (REIT), largely focused on shopping centre management and development. Originally named Transatlantic Insurance Holdings plc and later Liberty International plc, it changed its name in May 2010 to Capital Shopping Centres Group plc after demerging its Capital & Counties Properties business unit to form an independent business. The company adopted the Intu name on 18 February 2013, and this was followed by the rebranding of most of its shopping centres under the Intu title from May 2013.
The company's shares were listed on the London and Johannesburg stock exchanges until it entered administration in June 2020. The company owned or part-owned 17 shopping centres in the UK and one in Spain prior to entering administration.
History
File:Liberty International logo.png
The company was established by Sir Donald Gordon in 1980 under the name Transatlantic Insurance Holdings plc as an offshoot of Liberty Life Association of Africa, a business he had founded in 1957.{{Cite web |url=http://www.donaldgordon.org/sir-donald-gordon.html |title=Sir Donald Gordon - CV |access-date=2 March 2017 |archive-url=https://web.archive.org/web/20170801123329/http://www.donaldgordon.org/sir-donald-gordon.html |archive-date=1 August 2017 |url-status=dead }} The company developed into a leading investor in life assurance businesses in the 1980s and divested its remaining life assurance interests (a 29% holding in Sun Life) in 1991.{{cite web | url=https://www.intugroup.co.uk/en/about-us/history/ | title=Intu: History | work=Intu Properties|archive-url=https://web.archive.org/web/20170303050608/https://www.intugroup.co.uk/en/about-us/history/ |archive-date=3 March 2017 |url-status=dead}} In 1992 it merged with Capital & Counties, a leading shopping centre developer, securing itself a listing on the London Stock Exchange. It changed its name to Liberty International in 1996 and, after demerging Capital & Counties Properties in May 2010, renamed itself Capital Shopping Centres Group (CSC).{{cite web | url=http://citywire.co.uk/new-model-adviser/news/the-uks-10-most-shorted-stocks/a431853|title=The UK's 10 most shorted stocks|publisher=City Wire|date=21 September 2010|access-date=15 March 2015}}
The company also disposed of a significant holding in its Californian subsidiary Capital and Counties USA, which was acquired by Equity One in May 2010.{{cite web|url=http://www.streetinsider.com/Mergers+and+Acquisitions/Equity+One+%28EQY%29+Announces+$600M+Acquisition+of+Capital+and+Counties+USA/5665736.html|title=Equity One (EQY) Announces $600M Acquisition of Capital and Counties USA|publisher=Street Insider|date=24 May 2010|access-date=15 May 2015}} Equity One was later acquired by Regency Centers Corporation.{{cite press release | url=http://www.businesswire.com/news/home/20170301006495/en/Regency-Centers-Equity-Announce-Closing-Merger | title=Regency Centers and Equity One Announce Closing of Merger | publisher=Business Wire | date=1 March 2017}}
In 2011, CSC purchased the Trafford Centre from The Peel Group and offered a 20% stake in CSC to Peel chairman John Whittaker. The 20% stake in CSC was worth approximately £700m at the time, valuing the Trafford Centre at approximately £1.65 billion.{{Cite news |title=Trafford Centre set for £1.6bn sale to CSC group | last=Thompson |first=Thomas |url=https://www.independent.co.uk/news/business/news/trafford-centre-set-for-16316bn-sale-to-csc-group-2143056.html |newspaper=The Independent | date=25 November 2010 | access-date=8 March 2012}} Whittaker continued to purchase shares after the takeover and became the largest shareholder in 2012, with a stake of 24.63%.{{cite news | title=Whittaker spends £2m on CSC shares | url=http://www.placenorthwest.co.uk/news/archive/11225-whittaker-spends-2m-on-csc-shares.html | archive-url=https://archive.today/20120906195022/http://www.placenorthwest.co.uk/news/archive/11225-whittaker-spends-2m-on-csc-shares.html | url-status=dead | archive-date=6 September 2012 | work=Place North West | date=14 March 2012 | access-date=14 March 2012 }}
File:Capital Shopping Centres Group.svg
CSC purchased the Westfield Group's 75% stake in Westfield Broadmarsh in Nottingham in November 2011.{{cite web|title=Westfield sells Nottingham's Broadmarsh shopping centre | url=https://www.bbc.co.uk/news/uk-england-nottinghamshire-15670609 | publisher=BBC | date=10 November 2011 | access-date=17 February 2013}}
=Rebrand as Intu=
In January 2013, CSC announced its rebranding as Intu and the renaming of twelve of its shopping centres to incorporate the new consumer-facing brand.{{cite web | url=http://uk.reuters.com/article/uk-csc-intu-idUKBRE90E00720130115 | archive-url=https://web.archive.org/web/20160305202611/http://uk.reuters.com/article/uk-csc-intu-idUKBRE90E00720130115 | url-status=dead | archive-date=5 March 2016 | title=Mall owner CSC to change name to intu properties | work=Reuters | date=15 January 2013}}{{cite web | url=https://www.intugroup.co.uk/en/news/news-and-press-releases/csc-announces-new-consumer-brand-and-new-online-shopping-portal/ |title=CSC announces new consumer brand and new online shopping portal | date=15 January 2013 | publisher=Intu Properties plc}} A new orange and black brand identity was introduced at the same time, including a bird logo said to represent a "symbol of joy".[http://www.manchestereveningnews.co.uk/news/greater-manchester-news/trafford-centre-staff-makeover-redcoats-2635210 Trafford Centre staff get makeover as redcoats axed], Manchester Evening News, January 2013 At the same time and in response to changing consumer behaviour, Intu launched the UK's first online shopping centre and insourced all shopping centre staff, previously employed by facilities management company Bilfinger Europa.{{cite web|url=http://www.bifmawards.org/wp-content/uploads/2015/10/BIFM_Awards_Winners_2015.pdf|title=Award Winners 2015|publisher=BIFM|access-date=26 March 2018|archive-date=27 March 2018|archive-url=https://web.archive.org/web/20180327023627/http://www.bifmawards.org/wp-content/uploads/2015/10/BIFM_Awards_Winners_2015.pdf|url-status=dead}}
= 2013 to 2019 =
The company announced on 27 February 2013 that it had agreed to purchase Midsummer Place in Milton Keynes from Legal & General for £250.5 million. The sale was completed by the end of March 2013.{{cite press release | url=https://www.intugroup.co.uk/en/news/news-and-press-releases/acquisition-of-midsummer-place-milton-keynes/ |title=Acquisition of Midsummer Place, Milton Keynes | date=27 February 2013 | publisher=Intu Properties plc }}
In March 2014, Intu announced that it had purchased the Merry Hill Shopping Centre and Westfield Derby for a £867.8m property deal that saw Intu take complete ownership of Westfield's Derby shopping centre and Sprucefield Park in Northern Ireland.{{cite web | url=https://www.expressandstar.com/news/2014/03/20/merry-hill-centre-bought-in-407-7m-deal/ | title=Merry Hill centre bought in £407.7m deal|date=20 March 2014|access-date=21 March 2014}}
In December 2017, the company agreed to a takeover by property development company Hammerson for £3.4 billion, subject to shareholder approval.{{cite news | url=https://www.bbc.co.uk/news/business-42249040 | title=Shopping centres sold in £3.4bn deal| work=BBC News|date=6 December 2017|access-date=6 December 2017}} In April 2018, Hammerson recommended that its shareholders reject the proposed takeover.{{cite news|title=Bullring owner Hammerson pulls back from Intu takeover|url=https://www.bbc.co.uk/news/business-43807491|access-date=18 April 2018|publisher=BBC News|date=18 April 2018}} With Intu hit by declining footfall on the high street and failures among major retailers, Peel Group, Olayan Group, and Brookfield Property launched a £2.8bn takeover bid in October, but, after due diligence procedures, they withdrew the offer in November 2018.{{cite news |title=Another Intu rescue deal fails |url=https://www.theconstructionindex.co.uk/news/view/another-intu-rescue-deal-fails |access-date=29 November 2018 |work=The Construction Index |date=29 November 2018}}
In November 2019, Intu said it was in talks to sell three Spanish shopping centres: Puerto Venecia in Zaragoza, intu Asturias in Oviedo, and intu Xanadu in Madrid. In December 2019, it sold its share in the Zaragoza asset for €237.7 million,{{cite news |last1=Collard |first1=George |title=intu Properties Completes Spanish Sale To Carry On Cutting Debt |url=https://www.morningstar.co.uk/uk/news/AN_1577088916440836900/intu-properties-completes-spanish-sale-to-carry-on-cutting-debt.aspx |access-date=16 March 2020 |work=MorningStar |agency=Allianc News |date=23 December 2019 |archive-date=26 June 2020 |archive-url=https://web.archive.org/web/20200626222423/https://www.morningstar.co.uk/uk/news/AN_1577088916440836900/intu-properties-completes-spanish-sale-to-carry-on-cutting-debt.aspx |url-status=dead }} delivering net proceeds of around €115m.{{cite news |title=Intu sells Spanish mall for €475m |url=https://quoteddata.com/2019/12/intu-sells-spanish-mall-475m/ |access-date=16 March 2020 |work=QuotedData |date=23 December 2019}} The following month it sold its Oviedo asset, raising around €85 million.{{cite news |last1=Jahshan |first1=Elias |title=Intu sells another Spanish shopping centre for £245m |url=https://www.retailgazette.co.uk/blog/2020/01/intu-sells-another-spanish-shopping-centre-for-245m/ |access-date=16 March 2020 |work=Retail Gazette |date=28 January 2020}}
=2020 demise=
In March 2020, Intu abandoned a £1.3 billion emergency cash call as not enough investors were willing to support the call. The company had £4.5 billion of debt.{{cite news |url=https://www.theguardian.com/business/2020/mar/04/struggling-shopping-centre-owner-intu-abandons-1bn-cash-call |title=Struggling shopping centre owner Intu abandons £1bn cash call |last=Sweney |first=Mark |newspaper=The Guardian |date=4 March 2020 |access-date=4 March 2020}} The company subsequently warned that it could collapse if unable to raise further funds, after reporting a loss of £2bn for 2019. Intu shares had lost almost 90% of their value in a year, and the results announcement prompted a 25% drop to just over 4p.{{cite news |last1=Kollewe |first1=Julia |last2=Partridge |first2=Joanna |title=Trafford Centre and Lakeside owner warns it could go bust after £2bn loss |url=https://www.theguardian.com/business/2020/mar/12/intu-warns-it-could-go-bust-after-reporting-2bn-loss |access-date=13 March 2020 |work=Guardian |date=12 March 2020}} On 26 March, as the COVID-19 pandemic prompted more retailers to delay rent payments to Intu, the company warned that it would need some waivers from its lenders and was likely to breach its debt covenants in July; its shares fell 11% to 3.6p in the first hour of trading following the warning.{{cite news |last1=Hammond |first1=George |title=Intu suffers as commercial tenants withhold rent |url=https://www.ft.com/content/b83230e2-c2ee-4d39-b3ef-996cedec1585 |archive-url=https://ghostarchive.org/archive/20221211221246/https://www.ft.com/content/b83230e2-c2ee-4d39-b3ef-996cedec1585 |archive-date=11 December 2022 |url-access=subscription |url-status=live |access-date=28 March 2020 |work=Financial Times |date=26 March 2020 }} On 23 June, the company warned that shopping centres might close if financial restructuring talks with lenders failed, and lined up KPMG as administrators as a "contingency".{{cite news |title=Intu warns shopping centres may close as funding talks continue |url=https://www.bbc.co.uk/news/business-53136807 |access-date=23 June 2020 |work=BBC News |date=23 June 2020}} On 26 June, Intu went into administration.{{cite news |title=Shopping centre giant Intu enters administration |url=https://www.bbc.co.uk/news/business-53195980 |access-date=26 June 2020 |work=BBC News |publisher=BBC |date=26 June 2020}}
In August, Intu SGS, a subsidiary of Intu and holding company for Intu Watford, Braehead, Victoria Centre and Lakeside, received funding to take full control of the four centres, appointing Global Mutual as asset manager and Savills as property manager.{{cite news |last1=Nazir |first1=Sahar |title=Intu SGS secures £30m to take full control of 4 Intu centres |url=https://www.retailgazette.co.uk/blog/2020/08/intu-sgs-secures-30m-to-take-full-control-of-4-intu-centres/ |access-date=30 August 2020 |work=Retail Gazette |date=27 August 2020}} Intu SGS took full control of the four centres, with Global Mutual & Savills assuming management, in October.{{cite web |last1=Szajna-Hopgood |first1=Ava |title=Intu Lakeside, Watford, Victoria Centre and Braehead under new management |url=https://www.retailgazette.co.uk/blog/2020/10/intu-lakeside-watford-victoria-and-braehead-snapped-up/ |website=Retail Gazette |access-date=1 December 2023 |date=19 October 2020}} In September, the transfers of Intu Derby,{{cite news |last1=Nazir |first1=Sahar |title=Intu Derby becomes first of 17 centres to be snapped up since administration |url=https://www.retailgazette.co.uk/blog/2020/09/intu-derby-becomes-first-of-17-centres-to-be-snapped-up-since-administration/ |access-date=27 September 2020 |work=Retail Gazette |date=11 September 2020}} Merry Hill,{{cite news |title=Intu Merry Hill shopping centre transferred to new operator |url=https://www.bbc.co.uk/news/uk-england-birmingham-54188770 |access-date=27 September 2020 |agency=BBC News |date=17 September 2020}} and Milton Keynes to new owners were confirmed.{{cite news |last1=Nazir |first1=Sahar |title=Intu Milton Keynes snapped up by property group |url=https://www.retailgazette.co.uk/blog/2020/09/intu-milton-keynes-snapped-up-by-property-group/ |access-date=27 September 2020 |work=Retail Gazette |date=25 September 2020}} Intu announced that Chapelfield would also be transferred to new owners, although these were not identified.{{cite news |last1=Culot |first1=Caroline |title=Owners of Chapelfield shopping centre bow out – but 'no sale agreed' yet |url=https://www.edp24.co.uk/business/norwich-s-chapelfield-shopping-centre-owner-intu-bows-out-but-no-sale-agreed-yet-1-6857855 |access-date=27 September 2020 |work=Eastern Daily Press |date=27 September 2020}}
Properties
File:Trafford-arial.jpg was Intu's most valuable asset at £1.66 billion in 2019. Following administration June 2020, Intu's creditors took control in November 2020 forming The Trafford Centre Limited.]]
As of 31 December 2019 the company's investment properties were valued at £5.9 billion, when Intu owned or part-owned 17 shopping centres in the UK:
References
{{Reflist}}
External links
- Official website {{webarchive |url=https://web.archive.org/web/20201024191226/https://www.intugroup.co.uk/en/ |date=24 October 2020}}
{{Portal|Companies}}
{{Intu}}
{{Real estate in the United Kingdom}}
{{Authority control}}
Category:2020 disestablishments in England
Category:British companies disestablished in 2020
Category:Companies based in London
Category:Companies listed on the Johannesburg Stock Exchange
Category:Companies that have entered administration in the United Kingdom
Category:Real estate investment trusts of the United Kingdom
Category:Financial services companies established in 1980