Shopping centre firm boosted by companies' need to grow

Intu Properties says revenue and rental income have increased as existing outlets take on greater space and international companies choose its arcades to settle into the UK market.

Officials revealed well-known clothing purveyors, such as Zara and New Look, are taking on greater space, while aspirational brands, including Joules and Cath Kidston, are targeting Intu’s centres for growth.

They added New Look has chosen Gateshead’s MetroCentre, the vision of ex-Newcastle United chairman, Sir John Hall, to run its largest menswear store.

Intu, which also runs Newcastle’s Eldon Square, said the clamour for space, allied to higher customer footfall, meant revenue for the six months to June 30 stood higher at £285.5m, with net rental income climbing from £207.6m to £219.4m.

It added retailers were shrugging off any Brexit worries, with 106 leases in solicitors’ hands, of which 27 have exchanged since the referendum vote.

David Fischel, chief executive, said letting occupancy levels stand at more 96 per cent, with 82 UK long-term leases signed in the period.

He said: “Letting activity has been very positive.

“Our established retailers, such as Zara and Next, have been upsizing and we have welcomed new lifestyle brands and international retailers.

“Our centres remain attractive to global investors, with their regional locations less volatile than London’s commercial property market.”

Mr Fischel added Intu expects to find tenants for all of its BHS outlets, which will close in the coming weeks owing to the company’s administration.

Intu previously spent millions of pounds to revise restaurants at the MetroCentre and expects to open 20 catering outlets at Eldon Square in the autumn.

It added the MetroCentre’s market value was £952m at June 30, with Eldon Square worth £314m.

The MetroCentre opened in 1986 after Sir John was inspired by trips to the US and Canada.

His company, Cameron Hall Developments, masterminded construction of the arcade.