Intu boss seeks to "dispel myths" and save £3.4bn tie with Hammerson

The boss of shopping centres landlord Intu on Tuesday sought to “dispel myths”, and save its £3.4 billion tie-up with rival Hammerson amid growing shareholder concerns.

David Fischel told the Evening Standard: “There has been so much written about the death of retail, and we want to remind people that good-quality malls are doing well.”

The chief was speaking for the first time following a tumultuous month that saw French developer Klépierre make two takeover approaches for Brent Cross landlord Hammerson before walking away.

The offers had prompted Hammerson to freeze an all-share takeover of Lakeside owner Intu, unveiled in December.

Since Klépierre abandoned the £5 billion talks last week, a number of Hammerson shareholders are understood to have expressed concerns about Intu’s credentials in a tough UK retail market. Dutch pension fund APG has said it will vote against the deal.

Fischel said: “We want to dispel the myths that we are underinvested and overleveraged.”

In an unscheduled trading update, FTSE 250 firm Intu, which has 20 centres including in Watford and Uxbridge, said rents, occupancy and footfall rose between January and April 17. The balance sheet is “robust”.

It agreed 60 new leases in the period, and predicted rental income will rise by up to 2.5% in 2018.

Stifel analyst John Cahill said: “The tone of the statement lies somewhere between a marketing and defence document.”

Hammerson’s board is now understood to be reviewing whether to go ahead with the deal.

Shareholders, some of which have a stake in Intu, will have to be convinced the creation of a mega-landlord, with strength to compete with online, is more attractive than the Klépierre approaches.