Hong Kong-based Link Real Estate Investment Trust has revealed that it has no intention to participate in Intu’s (INTU) planned equity raise, as the shopping centre landlord struggles to bolster its balance sheet.
The announcement comes just one day after the property group confirmed press speculation that it was in “constructive discussions” with potential new investors, which included Link, along with existing shareholder Peel Group.
A spokesperson for Link said: “Link remains interested in opportunities in the UK, but our negotiations with Intu have now concluded.”
The group said it remained “engaged with shareholders and potential new investors” in relation to the plans to raise capital by issuing new shares, details of which are due to be announced alongside the group’s full-year results later this month.
The shares lost almost a third of their value following the announcement, reversing the prior day’s gains.
The plummeting valuations of the group’s investment portfolio pushed up the retail landlord’s loan-to-value ratio to an alarm-bell-ringing 58 per cent during the first half, up from 53 per cent in the prior year.
Like-for-like net rental income also fell 7.7 per cent – worse than guidance issued in May – due to rising administrations and company voluntary arrangements for retailers including House of Fraser and HMV.
