Intu brings in restructuring specialist

Intu has appointed David Hargrave as chief restructuring officer and a non-executive director. Hargrave spent 21 years at PwC and then more than 11 years at EY specialising in business turnarounds. John Strachan, intu’s chairman, said: “He brings a wealth of highly relevant experience from business turnarounds and restructuring. This will be of significant benefit as we work towards fixing the balance sheet and we look forward to his contribution to the board’s deliberations.” The firm added that it had now collected 40% of rent and service charge owed for the quarter by its tenants. It is now offering monthly rents to the end of the year and is in advanced discussions with occupiers representing a further 28% of the rent due. In addition, Intu said it had reduced its service charge costs and was passing these savings on to its tenants. Intu also flagged that a small number of large, well-capitalised brands, which it said had the ability to pay, had chosen not to and that in these cases it was prepared to take more “robust” action to enforce those leases. The troubled shopping centre owner has furloughed 60% of the staff at its centres and around 20% from its head office, while its board members have agreed to take a 20% pay cut for the next three months. Around £3m of short-term cost savings have been identified, Intu said. In addition, the company confirmed it has agreed a covenant waiver with lenders for its revolving credit facility which lasts until 26 June. It has also agreed with a counterparty to repay on 26 June or at a later agreed date certain interest rate swaps that were entered into by a subsidiary of Intu which had a mandatory break at the end of April. Intu said these actions were a “step forward” that would enable it to continue to engage with its key stakeholders at the asset level as it looks to survive the outbreak of Covid-19. Regulatory approval has also been given for the disposal of Intu Puerto Venecia in Spain and the transaction is expected to close in the middle of May. To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette