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Owner of Chapelfield shopping centre blames coronavirus for further financial woes

PUBLISHED: 15:05 18 May 2020 | UPDATED: 15:05 18 May 2020

Intu-owned Chapelfield, pictured before lockdown. Pic: Archant

Intu-owned Chapelfield, pictured before lockdown. Pic: Archant

The owner of Norwich’s Chapelfield shopping centre, Intu, has said it expects to breach covenants on its loans because of coronavirus.

The property manager, which said back in March it could collapse if it didn’t raise enough funds, is still in talks with lenders over its finances.

It said its shopping centres – which remain closed apart from essential shops – are ‘struggling in the face of the coronavirus pandemic.’ It has said it will ‘standstill’ agreements with creditors to ride out the current crisis.

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And it warned the speed of the market recovery after lockdown still remains unclear.

In March, Intu revealed annual losses were £2 billion. It stated there was a ‘material uncertainty’ over its ability to continue as a going concern as it faced a cash crunch, having recently been forced to abandon plans to raise up to £1.5 billion to pay down debts. The landlord had tried to raise the cash from investors but was rebuffed.

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