Shopping centre operator Intu Properties has reported continuing improvement in retailer demand, in its interim management statement which was published today. The company also confirmed that its £1.2 billion development programme is on track.
Intu, whose estate includes nine of the UK’s top twenty shopping centres, has agreed 71 new long term leases in the period from 1 July to 3 November.
The new leases represent £13 million in passing rent and bring the occupancy rate of Intu’s centres to 95 per cent, despite the recent closures of La Senza and Phones 4u. And, given the upturn in demand, Intu expects strong demand for these vacated units.
In an update on its ten year development plan, the company has confirmed that its active management projects at intu Lakeside and intu Eldon Court have been completed.
At intu Potteries, the majority of the steel structural work for centre’s £20 million leisure extension is in place.
Leases have been exchanged for the cinema and five new restaurants, bringing Cineworld, Nando’s, Frankie & Benny’s, Pizza Express, GBK and Chiquito’s to the centre. The scheme is on target for completion next summer.
The £42 million project to create 12 new restaurants at intu Victoria Centre is ongoing, and leases have been exchanged with a number of future occupiers.
At intu Watford, a contractor has been appointed for the £100 million Charter Place redevelopment with work set to start on the site in 2015.
Commenting on the interim statement, Intu chief executive David Fischel said: “We are pleased to see continued improvement in retailer demand for space, particularly evident in centres where we are undertaking investment and development projects.
“The benefits of last year’s rebranding as intu have been enhanced by further customer service and digital initiatives in the period.
“The balance sheet is in good shape strengthened by recent financing transactions and we have a wide range of organic growth opportunities with strong momentum in our £1.2 billion development pipeline.”
