Intu warns three shopping centres in the East may close

The owner of three shopping centres in East Anglia has warned they could close if the company is placed in administration.

Intu Properties, which owns Chapelfield in Norwich, Lakeside in Essex and Intu Milton Keynes, has appointed administrators KPMG in the event that it cannot reach an agreement with its lenders this week.

It warned that if it cannot reach an agreement and is placed in administration, without critical upfront funding from its lenders "there is a risk that centres may have to close for a period".

Intu is hoping to arrange a ‘standstill agreement’ on terms of up to 18 months, but said that at this stage it is unlikely to be more than 15 months.

Shoppers made their way back to the high street on June 15 after lockdown rules were relaxed and non-essential shops reopened their doors.

Shops were forced to close for nearly three months leaving Intu shopping centres strugging in the face of the coronavirus pandemic.

"Some centres have reduced rent collections as a result of Covid-19 and cash trapped under their financing arrangements which restrict their ability to pay for support, such as shopping centre staff, from other entities in the Intu group," the company warned.

"In the event that Intu Properties plc is unable to reach a standstill, it is likely it and certain other central entities will fall into administration."