Limping Intu the selling zone, and Hammerson’s on the hunt
Cash-strapped Intu is trading at a huge discount of 93% to net asset value, and its UK properties look juicy
JSE-listed Hammerson Plc (https://www.sharenet.co.za/v3/quickshare.php?scode=HMN), the owner of the UK’s iconic 44-year-old Brent Cross London shopping centre and Birmingham’s Bullring mall, has an opportunity to buy highly rated UK retail assets on the cheap from Intu Properties. (https://www.sharenet.co.za/v3/quickshare.php?scode=ITU)
Intu, which owns 17 malls in the UK and one in Spain, is facing its darkest hour as tries to raise cash so it can fund its day-to-day operations. It said in January that it was planning to raise capital at the end of February but didn’t specify how much it would need to raise. Since then a number of groups that could invest in Intu have declined to do so, including Link, a Hong Kong group.
Hammerson, which also owns super-regional malls in France and the Republic of Ireland, as well as small shopping outlets across Europe, tried to buy out Intu in December 2017 for £3.4bn (about R66.5bn). But in April 2018 Hammerson walked away, blaming a deterioration in the British retail property market and concerns about a lengthy merger process. ..