Intu warns tenants over unpaid rent amid coronavirus pandemic
Embattled retail landlord Intu has threatened to issue statutory demands to tenants that have refused to pay rent during the coronavirus crisis.
The shopping centre owner, which revealed last week that it had collected just 29 per cent of the quarterly rent due, said it had “neither the desire or financial capacity” to waive rents for “well capitalised” brands.
Intu said it would negotiate with tenants on a case by case basis, but would not “bankroll” retailers that have “just decided they don’t want to pay their rent” during the coronavirus crisis.
In an update last month Intu said government mandated coronavirus lockdowns meant its shopping centres in the UK and Spain were operating on a “semi-closed” basis after non-essential retailers were ordered to close.
Intu, which owns Manchester’s Trafford Centre, had been struggling before the coronavirus outbreak spread to the UK due to retail restructurings that have seen tenants shutter stores or seek rent reductions.
The property giant was forced to abandon a £1bn emergency cash call at the beginning of March, and subsequently raised doubts over its ability to continue trading as a going concern.
An Intu spokesperson said: “We are happy to engage with brand customers on a case by case basis, but we have neither the desire or financial capacity to bankroll global, well-capitalised brands who have just decided they don’t want to pay their rent.
“Our approach will be the same to any UK brands who behave in a similar way, not least because they are beneficiaries of significant financial support from the government.
“We have to take a tough line in these circumstances because we have a duty to protect our stakeholders including our 2,500 staff.”