A business tycoon is exploring a deal to buy out the owner of The Mall shopping centre at Cribbs Causeway.
Aref Lahham, who founded private equity firm Orion Capital, is reportedly in early-stage discussions to take over flailing property company Intu, according to the Sunday Times.
Intu, which owns shopping centres around the country including The Mall, lost hundreds of millions of pounds in the first half of 2019 in what has been a difficult year for the retail sector.
Chief executive Matthew Roberts admitted the first half of 2019 had been “challenging” when the company’s financial report was released last month.
Intu has been struggling following store closures in its shopping centres and the growing number of Company Voluntary Agreements - an insolvency procedure which allows retailers to slash rents - being taken out by store owners.
It is also battling to pay off heft debts worth around £4.7billion.
Orion Capital has a 9.2 per cent share in Intu, meaning it would need to come to an agreement with bigger shareholders such as Peel Holdings which has a 27.3 per cent stake in the business.
Shares in Intu have fallen in value by about two-thirds in 2019, but rose by around 20 per cent this morning (Monday, September 9) following the reports.
The buyout reports come nearly a year after a consortium led by Peel Holdings' John Whittaker dropped a £2.9billion bid for Intu.
The property giant was also at the centre of a failed merger with rival Hammerson, which owns Cabot Circus in 2018.
Last year, Intu saw £1.4billion wiped off the value of its property portfolio.
Intu has been contacted for comment.
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