Kuwaiti investor takes 50% stake in intu Derby
Intu properties and Cale Street Investments, an investment firm backed by the Kuwait Investment Office, have formed a 50/50 joint venture for the intu Derby shopping centre. Cale Street is paying £186.3m for its stake, in line with the centre’s valuation at 31 December 2018 of £372.5m.
intu Derby is located in the centre of Derby and is a key retail and leisure destination in the East Midlands, with an annual footfall of 22 million. The 1.3m-sq ft centre was extended and redeveloped in 2007 and provides over 200 units and includes key retailers such as M&S, Debenhams, Next, H&M, Sainsbury’s, Zara, Hollywood Bowl and Showcase Cinema de Lux. Intu will continue to manage the centre on behalf of the joint venture.
Chief executive designate Matthew Roberts said: “In what is a challenging investment market, this innovative transaction, which is in line with the December 2018 valuation, shows intu is delivering on its strategy of reducing loan to value through disposals and part-disposals. We expect the impact of this transaction to reduce our loan to value by around one per cent.”