Intu in £410 million bid to buy all of Merry Hill shopping centre
Shopping centre property giant intu is aiming to become sole owner of Merry Hill, spending around £410 million to buy the other half it doesn't already own.
It issued a brief statement to the City this morning confirming it is in 'advanced discussions' with QIC, co-owner of the Merry Hill shopping centre, regarding the potential acquisition of its 50 per cent stake.
It is two years since intu, which also owns the Lakeside and Trafford Centre shopping centres, spent £403.8 million buying Westfield's half stake.
The deal also put intu into the driving seat as manager of the 1.4 million sq ft retail site.
The other half remains in the hands of QIC, one of Australia's biggest investment funds with £40 billion under management.
Intu says if the deal goes ahead the price is likely to be around £410 million and will be funded through a combination of new debt and existing resources.
A spokesman said this morning: "Whilst discussions are ongoing, there can be no certainty that any transaction will be undertaken.
"A further announcement will be made if and when appropriate."
Intu has already spoken of its plans for major improvements at Merry Hill.
It has seen its half stake increasing in value since it was bought, with 22 new lettings over the last year. The company has said it aims to improve the tenant mix. There are around 213 stores and one aim is to combine some of the smaller units to create shops with bigger floorspace. This is allowing Top Man/Top Shop to move into a bigger unit.
In April Robert Pickersgill, marketing manager at intu Merry Hill, said: "We are excited for the future. We want customers to leave the store happier when they came in. We are about delivering world class customer service and creating a powerful shopping experience so that customers are happy.
"We are seeing increasing number of shoppers through the doors and our visitors have feedback that they like the improvements we have already made."
