Intu has today entered into a joint venture agreement in respect of intu Uxbridge. Kumpulan Wang Persaraan (Diperbadankan) , the £19 billion (Malaysian Ringgit 106 billion) Malaysian pension fund, has acquired an 80 % interest in intu Uxbridge for £175 million (approx. €216 million), representing a two per cent premium to its 31 December 2013 valuation of £213.9 million (100% basis). Intu retains a 20 % interest and will continue to manage the center on behalf of the joint venture.
The transaction is in line with Intu's stated strategy of recycling capital into its £1.2 billion (approx. €1.48 bln) development pipeline and demonstrates our capability to grow the scale of our business under the nationwide intu shopping center brand.
Intu will repay existing bank debt and terminate associated swaps amounting to around £155 million (approx. €191.3 mln) in aggregate. Net rental income for intu Uxbridge for the year ended 31 December 2013 was £11.7 million (approx. €14.44 million).
David Fischel, Chief Executive, commented:
“We are delighted to have entered into this partnership, establishing a relationship with a significant overseas investor and demonstrating the investment demand for prime UK shopping centers under the management of a specialist operator such as Intu. The transaction is a useful step in recycling capital into our substantial development pipeline. We look forward to working with our new partner, KWAP.”