intu seeks to access £330bn government support package

intu seeks ti access £330 billion government support package

In light of the rapidly evolving COVID-19 situation, intu has made a statement on coronavirus impact.

According to a statement by company, in line with the latest Government advice in UK and Spain, only essential stores, such as supermarkets, pharmacies and banks, will remain open in all centers.

Rent for the second quarter of the year in the UK was due on 25 March (the quarter day) and we have received 29 per cent of this. We are in discussions with our customers on the outstanding rents. For the same period last year, we had received 77 per cent on the quarter day,” said in the statement.

intu also noted that the impact of COVID-19 in Europe is delaying certain regulatory approvals in relation to the disposal of intu Puerto Venecia.It said it now expects the £95 million proceeds to be received in the middle of May at the earliest.

“We have significantly reduced capital expenditure for the foreseeable future and are cutting back on head office costs to maintain additional cash within the business.”

The company expects reduced social activities will impact potential future rents.

“The impact of the reduced rents received is expected to require us to seek covenant waivers and we are in constructive discussions with the relevant lenders.”

The company added that it has an ongoing dialogue with the UK Government and may look to access their £330 billion support package.

“In their recent announcement for the protection of commercial tenants from the non-payment of rent, they also stated that they are actively monitoring the impact of this on commercial landlords’ cash flow. Other Government measures announced of business rates suspension, employee cost support and tax payment deferrals, are also expected to have a positive impact,” said in the statement.