Intu Falls After Planning Share Sale to Finance Mall Purchase
Intu Properties Plc, the U.K.’s biggest mall owner, plans to sell shares to finance a 250.5 million-pound ($378 million) shopping center purchase. The stock fell the most since September.
Intu, formerly known as Capital Shopping Centres Group Plc, will acquire Midsummer Place Shopping Centre from Legal & General Group Plc (LGEN), according to a statement today. London-based Intu said it plans to sell as many as 86 million shares to help finance the transaction.
Retailers are favoring large malls that attract crowds with global brand names, allowing Intu to attract new stores and restaurants to its properties last year even as the weak U.K. economy led to tenant failures. Midsummer Place has 16.6 million square feet (1.5 million square meters) of shopping space, Intu said.
Adjusted earnings per share fell to 16.1 pence last year from 16.5 pence a year earlier. That equaled the average estimate of 14 analysts in a Bloomberg survey. Net rental income was little changed at 363 million pounds.
Intu dropped as much 3.8 percent in London trading, the biggest decline since Sept. 20. The shares were down 2.2 percent at 335.4 pence at 8:46 a.m. in London. Before today, they had gained 4.3 percent in six months.
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