Financial restructuring agreed for former intu centres

The company behind four former intu shopping centres has agreed a financial restructuring with lenders. SGS Finance and SGS Finco have agreed heads of terms for the long-term financial restructuring with a group of lenders and noteholders. The deal also includes new funding to support investment in the properties to “facilitate new lettings and support occupancy levels”. SGS manages the Lakeside centre in Essex, Watford’s shopping centre, Nottingham’s Victoria Centre and the Braehead Shopping Centre near Glasgow. Steve Gray, head of European retail asset management at Global Mutual, asset manager for the properties, described the agreement as “a defining moment for our four shopping centres”, adding: “Thanks to funding certainty and a stable capital structure we can now focus on delivering our three-year business plan and exit strategy with renewed confidence.” Lending secured against SGS’s sites comprises £1.15bn in bonds due across three tranches between 2028 and 2035, as well as a loan of £142m due this year. The agreement will see the maturities for series 1 note and term loan maturities extended to March 2024, with a further extension of nine months if certain milestones are met. It will also cover a new capital injection to finance SGS’s ongoing business plan for the centres. The deal has been agreed with parties representing 65% of the companies’ senior debt obligations. SGS aims to launch a consent solicitation for the restructuring in June and to complete it the following month. To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews