A BRITISH company behind a huge planned commercial complex on the Costa del Sol has been forced to sell off shares from its other projects to finance the so-called ‘smart city’.
According to Diario Sur, Intu is going through changes thanks to its debt and decline in stock market prices in a ‘complex market marked by the UK’s departure from the EU.’
According to Market Screener, Intu is ‘looking to preserve cash and reduce its debt by selling assets after it became a target of two failed takeover bids last year amid a difficult retail environment.’
The company has had to put 50% of shares from its centres in Zaragoza (Puerto Venecia) and Asturias (Intu Asturias), up for sale.
However as of last month, its share price has more than halved since Hammerson walked away from its takeover bid in April 2018.
It has led the company to announce it is looking for partners for its highly anticipated Torremolinos shopping and commercial park, which had promised to bring hundreds of jobs to the area and has taken years of negotiations to bring about.
It has resisted selling shares in its Torremolinos project, however, which has already awarded the initial €160 million construction phases to companies Sando and Dragados.
The company has the funds to see through the first phase but will be seeking financing for the rest of the project through ‘partners’, like it has done in other centres.
The project is described as the ‘most important’ current venture for Intu in Spain as it hopes to build similar centres in Valencia and Vigo.
The go ahead for Intu Torremolinos has been given the green light by the Junta and awaits final approval of planning permissions from the PGOU in July.
The centre is expected to attract big names like El Corte Inglés, Primark, Nike Store, Zara, Desigual, Conforama, Ikea, Fnac and Decathlon.
Intu says the complex will be the largest commercial and leisure park in southern Europe.
Its facilities will include a wave pool, aquarium, hotel and 23,000 square meters for sports spaces with climbing area and a wind tunnel.