INTU PROPERTIES PLC
LEI: 213800JSNTERD5CJZO95
Regulated Information Classification: Additional regulated
information required to be disclosed under the laws of a Member
State of the EU.
2 NOVEMBER 2017
INTU PROPERTIES PLC AND LASALLE
INVESTMENT MANAGEMENT ANNOUNCE CREATION OF A 50/50 JOINT VENTURE TO
OWN INTU CHAPELFIELD
intu properties plc (‘intu’) and LaSalle Investment Management
(‘LaSalle’) acting on behalf of Greater Manchester Pension Fund and
West Yorkshire Pension Fund are forming a partnership to jointly
own intu Chapelfield shopping centre in Norwich.
LaSalle will acquire a 50 per cent interest in the property for
net consideration of £148 million, before working capital
adjustments, which represents a net initial yield of 5.0%. The
consideration for the 50 per cent interest is in line with the
valuation at 31 December 2016 of £296
million (100 per cent) and a small discount to the valuation at
30 June 2017 of £305 million (100 per
cent). The net rental income of the property was £15.5 million for
the year ended 31 December 2016.
intu Chapelfield is located in the centre of Norwich and a key
retail destination in East Anglia, with an annual footfall of 12
million. The centre provides 90 units and includes key retailers
such as House of Fraser, Apple, Zara, River
Island, H&M and Boots.
intu will continue to manage the centre on behalf of the joint
venture. The closing of the transaction is subject to EU merger
clearance.
The transaction further advances intu’s stated strategy of
introducing investment partners to its assets and recycling capital
into its UK development pipeline. intu will use the net proceeds of
the transaction to repay debt on its revolving credit facility and
to invest into its committed development pipeline.
David
Fischel, intu Chief Executive, commented:
“We look forward to working with LaSalle Investment Management
on intu Chapelfield which, since its opening in 2005, has firmly
established itself as the prime retail destination in East
Anglia.”
Tom
Rose, Fund Manager at LaSalle, said:
“I am delighted with this investment that we have made on behalf
of the Greater Manchester and West Yorkshire Pension Funds, and
also to be partnering with intu. This is an acquisition that we
believe will provide long-term value. It is a quality asset in an
affluent catchment area, well-aligned with our strategy for UK
investments.
Councillor Kieran Quinn, Leader of Tameside Council and
Chair of GMPF (Greater Manchester Pension Fund), added:
“This is an excellent addition to our portfolio. Greater
Manchester Pension Fund, which is the largest Local Government
pension fund in the country and managed by Tameside Council, is
committed to achieving sustainable long-term investment returns for
our members’ pension requirements. I am confident that the
partnership between LaSalle and intu will prove successful in its
management of this asset.”
ENQUIRIES
intu properties
plc |
David Fischel |
Chief Executive |
+44 (0)20 7960 1207 |
Matthew Roberts |
Chief Financial Officer |
+44 (0)20 7960 1353 |
Adrian Croft |
Head of Investor Relations |
+44 (0)20 7960 1212 |
|
Public
relations |
UK: |
Justin Griffiths, Powerscourt |
+44 (0)20 7250 1446 |
SA: |
Frédéric Cornet, Instinctif
Partners |
+27 (0)11 447 3030 |
LaSalle Investment
Management |
Lydia Eades |
Head of EMEA Corporate
Communications |
+44 (0)20 7852 4110 |
NOTES FOR EDITORS
About intu
intu is the UK's leading owner, manager and developer of prime
regional shopping centres with a growing presence in Spain.
We are passionate about creating uniquely compelling
experiences, in centre and online, that attract customers,
delivering enhanced footfall, dwell time and loyalty. This helps
our retailers flourish, driving occupancy and income growth.
We own many of the UK's largest and most popular retail
destinations, with super-regional centres such as intu Trafford
Centre and intu Lakeside and vibrant city centre locations from
Newcastle to Watford.
We are focused on four strategic objectives: optimising the
performance of our assets to deliver attractive long-term total
property returns, progressing our UK development pipeline to add
value to our portfolio, leveraging the strength of our brand and
seizing the opportunity in Spain
to create a business of scale.
We are committed to our local communities, our centres support
over 120,000 jobs representing about 4 per cent of the total UK
retail workforce, and to operating with environmental
responsibility.
Our success creates value for our retailers, investors and the
communities we serve.
About LaSalle Investment
Management
LaSalle Investment Management is one of the world’s leading real
estate investment managers with approximately $59 billion of private and public equity and
private debt investments under management (as of Q2 2017).
LaSalle’s diverse client base includes public and private pension
funds, insurance companies, governments, corporations, endowments
and private individuals from across the globe.
LaSalle sponsors a complete range of investment vehicles
including separate accounts, open- and closed-end funds, public
securities and entity-level investments. LaSalle is a
wholly-owned, operationally independent subsidiary of
Jones Lang LaSalle Inc. (NYSE: JLL), one of the world’s largest
real estate companies. For more information please visit
www.lasalle.com.