Intu Properties — which has interests in more than 15 UK retail complexes — has confirmed it is in talks to buy Westfield’s Derby shopping centre. It also wants to acquire Westfield’s half-share in Merry Hill in Dudley. If the both negotiations are successful it would confirm Intu’s status as Britain’s number one owner and manager of regional shopping centres, controlling six of the UK’s top ten malls.
The statue of glass maker John Northwood outside Merryhill shopping centre
Westfield bought out its 50-50 joint venture partner Hermes for £190m four years ago to take sole control of the 1.2m square foot Derby shopping mall. It has now charged Savills with selling the retail site for at least £400m.
The Derby complex was Westfield’s first UK project when it refurbished and extended the old Eagle Centre into a three-level centre with 221 retail units and 3,700 parking spaces. Boots, Debenhams, Marks & Spencer and Next are its four biggest tenants.
In a Stock Exchange announcement the Intu board said: “If the acquisition were to proceed, it is likely that it would be funded through a combination of new debt and equity. However, although discussions are ongoing, there can be no certainty that any transaction will be undertaken.”
Intu also wants to buy out Westfield’s remaining 50 per cent stake in the Merry Hill shopping centre. The other shareholder is the Australian government’s Queensland Investment Corporation with Westfield acting as manager.
Merry Hill consists of a 220-acre mixed-use complex, including the 1.5m square foot shopping centre with Debenhams, Marks & Spencer, Sainsbury’s and Asda as anchor stores.
Selling its Derby centre and the interest in Merry Hill would complete Westfield’s withdrawal from the UK regions after sales in recent years in Belfast, Guildford and Tunbridge Wells. Its UK operation would then be free to focus on its London malls at Shepherd’s Bush, Stratford and Croydon.
If it were successful, the acquisitions — which could, by some estimates, cost Intu anything up to £1bn — would make the retail property firm the dominant shopping centre owner in the Midlands where it already owns Intu Potteries and two centres in Nottingham.
Previous Post
Key Funding in Place for Abbey Wood Development
