Retail Property Group Halts £1bn Funding Plan Amid Market Turmoil
- Intu abandons £1bn equity raise plans due to market uncertainty
- Retail property group Intu had been considering various options for balance sheet fix and capital structure
- Shareholders showed support but market conditions deterred potential investors
- Alternative options being explored, including asset disposals and alternative capital structures
- Like-for-like rental income down 9.1% in 2019, guidance for 2020 remains unchanged
- Audited preliminary results on 12 March 2020
Intu, the retail property group that owns Lakeside in Essex and Trafford Centre in Manchester, has abandoned plans to raise between £1bn and £1.5bn due to current uncertainty in equity markets. The company had been reviewing a range of options for its balance sheet fix and establishing a more appropriate long-term capital structure. Despite several expressions of interest for alternative capital structures and asset disposals, the group will continue discussions with stakeholders to explore options that demonstrate the equity value of the business and utilize assets for further liquidity. Intu’s like-for-like rental income in 2019 declined by 9.1%, but guidance for 2020 remains unchanged with a slower rate of decline than last year. The audited preliminary results will be announced on March 12, 2020.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Intu’s decision to abandon its plans for an equity raise due to market uncertainty and mentions the company’s ongoing discussions with shareholders and potential investors. It also reports on the decline in like-for-like rental income and guidance for 2020, as well as the CEO’s comments on the business’s operational performance.
Noise Level: 3
Noise Justification: The article provides relevant information about Intu’s decision to abandon its equity raise plans due to market uncertainty and explores alternative options. It also discusses the company’s financial performance and outlook. The CEO’s comments on the business’s operational strength add value to the report.
Financial Relevance: Yes
Financial Markets Impacted: Equity markets and retail property investment markets
Financial Rating Justification: The article discusses Intu’s decision to abandon plans for an equity raise due to uncertainty in the equity markets, which impacts the company’s financial situation and its ability to raise funds. It also mentions the impact on retail property investment markets.
Presence Of Extreme Event: Yes
Nature Of Extreme Event: Financial Crisis
Impact Rating Of The Extreme Event: Moderate
Extreme Rating Justification: Intu abandoned plans to raise between £1bn and £1.5bn due to uncertainty in equity markets, impacting its balance sheet and capital structure. The company will explore alternative options such as asset disposals and capital structures.
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