Intu paid less than a third of rent due
Intu has been paid less than a third of the rent it was due by tenants.
The shopping centre owner said it received 29% of UK rents for the second quarter of the year on the quarter day, 25 March.
This compares to 77% of rents paid for the same period last year.
Intu has been paid less than a third of the rent it was due by tenants.
The shopping centre owner said it received 29% of UK rents for the second quarter of the year on the quarter day, 25 March.
This compares to 77% of rents paid for the same period last year.
Intu is now in talks with its lenders in a plea to waive covenants.
All shopping centres in the UK and Spain are “semi-closed”, with just essential stores, such as supermarkets, pharmacies and banks, still open.
The withholding of rent as Covid-19 spreads across Europe caused another slump in revenue for the troubled landlord.
It expects to receive £95m in proceeds from the disposal of intu Puerto Venecia in mid-May at the earliest.
As of 24 March 2020, Intu has immediate available cash and facilities of £184m.
Intu said it has an ongoing dialogue with the UK government and may look to access the Treasury’s recently announced £330bn support package. It will also benefit from the suspension of business rates, employee cost support and tax payment deferrals.
However, commercial property landlords and lenders now face renewed pressure after a government ban on evictions.
Intu is already supporting occupiers with an 11% reduction in its service charge budget for the full year.
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