CPP Investments exercises rights to gain ownership of Trafford Centre

Canada Pension Plan Investment Board (CPP Investments) has acquired the ownership of Manchester shopping centre, the Trafford Centre through its wholly owned subsidiary CPPIB Credit Investments Inc (CPPIB Credit).

In June 2020, intu was placed into administration and a sale process was initiated for the Trafford Centre, however no viable bids were received.

In 2017, CPPIB Credit provided a £250m facility to Intu Trafford Centre Group (UK) Limited (ITCG), which was secured by the equity interest in the Trafford Centre. 

As the principal secured creditor of ITCG with security over the equity interest in the Trafford Centre, and in the absence of alternative sources of funding and the unsuccessful sale process, CPPIB Credit has now exercised its rights to acquire the shares in ITCG and the ownership of the Trafford Centre.

“The Trafford Centre is one of the U.K.’s top five shopping centres, welcoming more than 30 million shoppers annually, and counts many leading global retailers among its occupiers,” Geoff Souter, Managing Director, Head of Real Assets Credit, CPPIB Credit said.

“While conditions for retail in 2020 have been very challenging, we are able to take a long-term view and believe that, with strategic management and investment, the Trafford Centre has strong prospects. An immediate priority is to support the Trafford Centre’s management, ensuring continued optimal operation of the Trafford Centre, and to appoint a long-term expert operating partner.”

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