INTU updates - 3.5 months later and still no visibility

All,

We have updated INTU Trafford Centre here, INTU SGS here and INTU Metrocentre here.

INTU Group went into administration 26th June 2020, but 3 1/2 months later there is still very limited visibility at the individual securitisation level.  Another set of reported numbers came out for Q2 but as the UK enters into another bout of Covid restrictions, the anticipated Christmas season (and corresponding higher rental collections) is likely to be dampened.  None of the securitisation vehicles have yet to take control of the management of the centres and still officially operate under  the Transitiional Service Agreement (TSA) with INTU Group (via KMPG, the administrator).  However, in the coming weeks/months we would expect this to change, with INTU SGS likely to be the first, having already progressed some additional liquidity (£15m) and waivers up until end of the year for coupon and covenant purposes.  

Although significant time has passed since the various INTU bonds started trading at distressed levels, surprisingly very little of the bonds has traded.  We continue to monitor the situation, but we are not actively taking a position in the names at this moment in time.  

Happy to discuss further

Tomás 
___________________

Tomás Mannion
2 Stephen Street
London W1T 1AN
E: tmannion@sarria.co.uk
T: +44 20 3744 7009

M:+44 7786 705 806
www.sarria.co.uk