Troubled 海角视频 shopping centre owner Intu is warning it could potentially breach its debt commitments unless it secures waivers from lenders following a fall in rents caused by Covid-19.
The property giant, which owns centres including Newcastle's Eldon Square, Birmingham鈥檚 Merry Hill and The Mall in Bristol, said it had only received 29 per cent of the rents it was due in the second quarter - down from 77 per cent last year.
The company, which has semi-closed all of its 海角视频 centres over coronavirus, said it was in 鈥渃onstructive discussions鈥 with lenders but it could no long provide guidance in relation to the 2020 financial year.
Intu said it had immediately available cash and facilities of 拢184million but it had 鈥渟ignificantly reduced鈥 capital expenditure for the 鈥渇oreseeable future鈥 and is cutting back on head office costs to maintain additional cash within the business.
The company said it had also initiated a programme of reducing non-essential service charge costs and is passing the savings on to customers.
鈥淥ur three priorities are to look after our employees, to protect our business and to play our role in society,鈥 Intu said in a statement.
聽鈥淭he reduced social activity is likely to continue for the foreseeable future impacting our footfall and potential future rents.鈥
It added: 鈥淚n line with the latest Government advice... only essential stores, such as supermarkets, pharmacies and banks, remain open.鈥
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Intu says it is in an 鈥渙ngoing dialogue鈥 with the Government and may look to access its 拢330billion support package.
The company said they expect measures announced around business rates suspension, employee cost support and tax payment deferrals, to have a 鈥減ositive impact鈥.
Intu added: 鈥淚n these difficult times we continue to assess all strategic alternatives and will provide further updates as appropriate.鈥
