intu forms JV with Kuwait-backed Cale Street

UK-based real estate company, intu properties plc has announced a 50/50 joint venture with Cale Street Investments LP, an investment firm backed by the Kuwait Investment Office, London – which is part of the Kuwait Investment Authority – for the intu Derby shopping centre.

Cale Street will acquire for cash the 50% 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.

intu will continue to manage the shopping 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 underway.

“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,” said Matthew Roberts, chief executive designate for intu.

intu Derby is a key retail and leisure destination, located in the centre of Derby. It records an annual footfall of 22 million. The 1.3 million sqft centre was extended and redeveloped in 2007 and is home to retail brands such as Marks & Spencer, Debenhams, Next, H&M, Sainsbury’s, Zara, Hollywood Bowl and Showcase Cinema de Lux, to name a few.