One of the UK’s largest shopping centres, The Trafford Centre, based in Manchester, has been taken over by its lenders, the Canada Pension Plan Investment Board (CPPIB)

CPPIB has been an important lender for the Trafford Centre since property-investment trust Intu filed for administration in June with debts totalling over £4.5bn. It provided Intu with a £250m lending facility three years earlier.

The lenders have taken control of the Trafford Centre as no bids of an acceptable amount have been received to acquire the centre. The highest bids received were around £800m, which is deemed too low for the centre that was previously worth £1.7bn a year.

CPPIB managing director and head of real assets Geoffrey Souter said: “The Trafford Centre is one of the UK’s top five shopping centres, welcoming more than 30 million shoppers annually, and counts many leading global retailers among its occupiers.

“While conditions for retail in 2020 have been very challenging, we are able to take a long-term view and believe that, with strategic management and investment, the Trafford Centre has strong prospects.

“An immediate priority is to support The Trafford Centre’s management, ensuring continued optimal operation of the Trafford Centre, and to appoint a long-term expert operating partner.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Intu seeking buyer for Trafford Centre since August

In August, Intu began seeking buyers for The Trafford Centre after filing for administration. It called on investment bank PJT Partners and property agent CBRE to oversee the sales process.

When the centre began seeking bids, analysts estimated that it would be sold for 20% less than its last public value of £1.7bn. However, the centre has since seen bids of less than 50% of this value.

Why did Intu fall into administration?

In June, Intu announced that it would be filing for administration, appointing KPMG as administrators.

This came due to the firm being unable to reach an agreement with its lenders during financial restructuring efforts.

The Covid-19 coronavirus pandemic was in part blamed for the firm entering administration, however, Intu had been struggling before the pandemic. Analysts theorised that this was because of high business rates and increased demand for online shopping.

Since falling into administration, Intu’s shopping centres have been operating as normal.