Shares in Braehead owner intu plunged by more than 27% today after one of its major investors pulled out of plans to throw the company a cash lifeline.
The debt-ridden retail landlord had on Monday confirmed it was asking investors to plough in more investment, reported to £1 billion. Hong Kong-based Link Real Estate Investment Trust was reported to be ready to join the equity fundraise.
But intu said today in a statement: "Link Real Estate Investment Trust has informed intu of its intention to no longer participate in a recapitalisation of the company. intu remains engaged with shareholders and potential new investors in relation to a proposed equity raise. The Company will make further announcements in due course, as appropriate.
intu, whose shopping malls across the UK include the Trafford Centre in Manchester as well as Braehead, near Glasgow, said on Monday it was in talks with shareholders including Link and the Peel Group about a proposed equity raise. Intu, which is £5 billion in debt, has been hit badly over the last year by trouble in the retail sector as tenants such as Arcadia group have sought rent cuts through CVAs.
