CPPIB takes ownership of Trafford Centre as sale process ends
Canada Pension Plan Investment Board has formally acquired the ownership of the Trafford Centre in Manchester, following an unsuccessful sale process.
CPPIB is the principal secured creditor for the vehicle in which the centre is held (intu Trafford Centre Group), having provided a £250m loan facility in 2017.
The pension fund said there were ultimately no viable bids or alternative sources of funding for the centre. As such, it has exercised its rights to buy the shares in the vehicle and take ownership of the property.
Canada Pension Plan Investment Board has formally acquired the ownership of the Trafford Centre in Manchester, following an unsuccessful sale process.
CPPIB is the principal secured creditor for the vehicle in which the centre is held (intu Trafford Centre Group), having provided a £250m loan facility in 2017.
The pension fund said there were ultimately no viable bids or alternative sources of funding for the centre. As such, it has exercised its rights to buy the shares in the vehicle and take ownership of the property.
Intu, the parent company, was placed into administration in June this year.
Geoff Souter, managing director and head of real assets credit at CPPIB’s credit arm, said the pension fund will now seek an operator for the centre as well as evaluating its capital structure.
“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,” he said.
“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.”
Intu’s administrators at KPMG had enlisted CBRE to advise on the sale process, alongside investment bank PJT Partners.
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