Lenders approve £112m strategy for SGS shopping centres

The lenders and bondholders behind SGS Finance, which holds four former intu shopping centres, have voted in favour of a package of measures underpinning a three-year restructuring and exit strategy, including a £112m investment plan. The propco – which holds the Lakeside centre in Essex, Watford’s Atria shopping centre, Nottingham’s Victoria Centre and the Braehead Shopping Centre – launched a fifth consent solicitation to its bondholders last month. Term lenders and all noteholders casting a vote – representing 88% of all noteholders eligible to vote – were unanimously in favour of the proposals, according to SGS. The plan includes £112m of investment in capital projects to facilitate new lettings and support occupancy levels, supported by new funding. Steve Gray, head of European retail asset management at Global Mutual, said: “This latest vote in favour of our financial proposals is a critical milestone for SGS and a clear demonstration of the continued support we enjoy from our lender group. “It has been a challenging period for the sector as a whole, but we are emerging from the pandemic in good shape, with an improving operational performance and the right strategy in place. We can now implement our longer-term business plan with renewed confidence.” To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews