Shopping centre operator Intu said the current negative sentiment towards retail and retail property has hit its valuations, with a revaluation deficit of £650m, down 6% on the previous year.
However the owner of Manchester’s Trafford Centre, Lakeside in Essex and Metrocentre in Gateshead said that it has seen minimal impact from the administrations and company voluntary arrangements (CVAs) seen over the last few months, with House of Fraser keeping all of its four stores with Intu.
The company is set to open a £180m extension at its Watford site in October this year, followed by a £72m leisure extension at Lakeside in the first half of next year. It will also spend £15m on enhancing its Merry Hill site.
“Intu centres are in prime locations with high footfall and offer plenty of opportunities to increase density through additional mixed use developments,” said chief executive David Fischel. “They have remained prime because we have always adapted and responded vigorously to the ever changing retail environment with continued investment and creative asset management satisfying the needs of retailers.”