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INTU PROPERTIES PLC - Intu and Cale Street Investments - Creation of 50/50 Joint Venture for Intu Derby

Release Date: 18/04/2019 08:42
Code(s): ITU     PDF:  
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Intu and Cale Street Investments - Creation of 50/50 Joint Venture for Intu Derby

(Registration number UK3685527)
ISIN Code: GB0006834344
JSE Code:      ITU

18 APRIL 2019


intu properties plc (‘intu’) and Cale Street Investments LP (‘Cale Street’), an investment firm
backed by the Kuwait Investment Office, London, are pleased to announce the
establishment of a 50/50 joint venture for the intu Derby shopping centre.
Cale Street will acquire for cash the 50 per cent interest for consideration which values their
share of the property at £186.3 million, before taking account of senior debt finance and
customary working capital adjustments. This structured equity transaction includes a
prioritisation waterfall for distributions to the joint venture partners.
The consideration for the 50 per cent interest is in line with the valuation at 31 December
2018 of £372.5 million (100 per cent), which represents a net initial yield of 6.6 per cent. The
net rental income of the property was £25.2 million for the year ended 31 December 2018.
intu Derby is located in the centre of Derby and is a key retail and leisure destination in the
East Midlands, with an annual footfall of 22 million. The 1.3 million sq ft centre was extended
and redeveloped in 2007 and provides over 200 units and includes key retailers such as
M&S, Debenhams, Next, H&M, Sainsbury’s, Zara, Hollywood Bowl and Showcase Cinema
de Lux.
intu will continue to manage the centre on behalf of the joint venture. The closing of the
transaction will be subject to completing senior debt finance, the discussions for which are
well advanced, and certain other completion conditions.
The transaction further advances intu’s stated strategy of reducing its debt to assets ratio
through disposals, part-disposals and introducing partners to assets. Following the joint
venture financing process, intu will use the net proceeds of the transaction to repay debt.

Matthew Roberts, Chief Executive Designate, commented:
“We are pleased to announce our new partnership with Cale Street and look forward to
working with them at intu Derby.
In what is a challenging investment market, this innovative transaction, which is in line with
the December 2018 valuation, shows intu is delivering on its strategy of reducing loan to
value through disposals and part-disposals. On a pro-forma basis, we expect the impact of
this transaction to reduce our loan to value by around one per cent.”

JSE Sponsor:
Merrill Lynch South Africa (Pty) Limited

 intu properties plc
 Matthew Roberts          Chief Executive Designate                 +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

About intu
intu owns and manages some of the best shopping centres, in some of the strongest
locations, in the UK and Spain.
Our UK portfolio is made up of 17 centres, including eight of the top-20, and in Spain we own
three of the country’s top-10 centres, with advanced plans to build a fourth.
We are passionate about creating compelling experiences, in centre and online, that make
our customers smile and help our retailers flourish.
We attract around 400 million customer visits and 26 million website visits a year offering a
multichannel approach that truly supports retail strategies.
Our strategic focus on prime, high-footfall flagship destinations, combined with the strength
and popularity of our brand, means that intu offers enhanced footfall, dwell time and loyalty.
This helps our tenants flourish, driving occupancy and income growth.
We are committed to our local communities, with our centres supporting nearly 130,000 jobs
(representing about 3 per cent of the total UK retail workforce), and to operating with
environmental responsibility. We have already met or exceeded a significant number of our
2020 environmental targets.

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