Intu has launched a heavily discounted £500m rights issue to source its purchase of three Westfield shopping centres.
The £867.8m deal includes a 50% stake in Westfield Merry Hill in Dudley, West Midlands, Westfield Derby and Westfield’s Sprucefield retail park in Northern Ireland.
As well as the heavily discounted rights issue – the new shares were issued at a 53% discount to NAV – Intu will use £423.8m of new debt facilities to fund the deal.
The acquisition expands Intu’s offer across the Midlands, adding close to 3m sq ft at Merry Hill and Derby to the 2m sq ft it already owns at the Victoria and Broadmarsh centres in Nottingham and the Potteries mall in Stoke-on-Trent.
The acquisition of Sprucefield, which comprises 230,000 sq ft on the outskirts of Belfast, signals Intu’s debut in Northern Ireland.
Merry Hill accounts for £407.7m of the total deal price; Derby £390.3m and Sprucefield £69.8m. The assets provide a combined rent roll of £54.9m.
Merry Hill is jointly owned with QIC, which will retain its 50% stake. Intu will take over as asset and development manager.
Nick.Whitten@estatesgazette.com
