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Trafford Centre owner Intu picks insider as next chief executive

The property group which owns Manchester's Trafford Centre will this week elevate its finance chief to run the company as it contends with a brutal industry environment.

Sky News has learnt that Intu Properties, which is one of Britain's biggest retail landlords, will name Matthew Roberts as its new chief executive in a stock exchange announcement as early as Thursday.

The appointment will come after a nine-month search for a successor to veteran boss David Fischel, and just days after the company was reported to be about to hire an outsider for the job.

Intu denied weekend speculation that it was lining up Tony Buffin, a former executive at the builders' merchant Travis Perkins, as its next chief executive, although he is understood to have been among the other candidates considered for the role.

Mr Roberts, a former chief financial officer of the bookmaker Gala Coral, joined Intu in 2010.

He will land in the top job at a tumultuous time for both the company, which owns eight of the UK's top 20 shopping centres, and its industry.

Last year, Intu, which also owns the Lakeside shopping centre near London and sees 400 million consumer visits to its portfolio of malls each year, saw two takeover bids for it collapse .

The first, from rival Hammerson, prompted a shake-up in its suitor's boardroom, while the second - led by its largest shareholder, Peel Group - also fell away amid a disagreement about the value of the deal.

However, few analysts expect Intu and Hammerson to remain as independent listed companies in the long term as a shakeout in the retail sector wreaks havoc with property valuations.

Intu's shares are trading at a massive discount to asset value as investors wrestle with the implications of its multi-billion pound debt pile.

Mr Roberts' challenges will include tackling that, as well as realigning its real estate portfolio to focus on future growth opportunities.

A former executive at Top Shop and Debenhams, he is well-regarded in the property industry, and is said to have been picked by the board to take over from Mr Fischel partly because of his familiarity with the business.

Intu, which also owns some of Spain's biggest retail malls, has a property portfolio worth more than £9bn but which declined in value by £1.4bn last year.

Insolvencies, store closures and rent cuts in the retail sector - including at companies such as Carpetright, House of Fraser, Mothercare and New Look - have damaged sentiment towards retail landlords in recent years.

Next week, Debenhams, Britain's biggest department store chain, is expected to go through a pre-pack administration that will see it taken over by its lenders, barring a last-minute takeover by the Sports Direct tycoon, Mike Ashley.

Sir Philip Green, the billionaire owner of Arcadia, is another prominent figure impacted by the retail carnage, with a store closure programme expected to be put to creditors in the coming weeks.

However, industry insiders pointed to reasons for Mr Roberts to be upbeat as he steps into the top job at Intu.

The company has reported a resilient operational performance, with lettings last year ahead of the previous 12 months, and a rise in like-for-like net rental income.

Intu also boasts close to full occupancy, with tenants investing a record £144m in their units, which company insiders said underlined their commitment to having physical stores in superior locations.

Mr Roberts is expected to accelerate plans already under development for Intu to exploit mixed-use opportunities such as residential units around its centres.

Intu declined to comment on Wednesday.