Intu SGS clinches waivers and new funding for four shopping centres

Intu’s SGS propco, which holds the troubled landlord’s Watford, Lakeside, Victoria Centre and Braehead centres, has secured a package of financial measures including covenant waivers and a new £30m facility. The proposals, which were approved by creditors today, comprised waivers for certain events of default such as financial covenants; interest deferral; a new super senior facility of up to £30m; and releasing previously withheld cash from certain accounts, to boost liquidity for operations. This new support package means that the four centres will not risk default as a result of shopping centre valuation declines in the six months to 30 June. A spokesman for Intu SGS said: “The proposals that we have agreed today provide us with the stable financial platform to move forward as we continue to recover from the impact of Covid-19. “Creditors have also agreed to inject up to £30m of new money if required, in a further statement of support.” He said the four centres are 92% occupied, with more than 90% open and trading after lockdown measures eased. “Footfall continues to increase across all four centres with the stand-out performer being intu Braehead, which has almost returned to pre-pandemic levels,” the spokesman added. Intu’s parent company fell into administration on 26 June. Intu SGS is preparing to take control of its four assets, with full migration expected to take place later this year. It has appointed Global Mutual to be its asset manager, and Savills as its property manager once the transition is complete. To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette Photo: intu