Intu Properties plc - Creation of 50/50 Joint Venture in Intu Chapelfield

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	[phone]
Matthew Roberts	Chief Financial Officer	[phone]
Adrian Croft	Head of Investor Relations	[phone]
Public relations
UK:	Justin Griffiths, Powerscourt	[phone]
SA:	Frédéric Cornet, Instinctif Partners	[phone]

   

LaSalle Investment Management
Lydia Eades	Head of EMEA Corporate Communications	[phone]

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.

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