The owner of The Mall shopping centre at Cribbs Causeway is battling to shore up its finances as it struggles with billions of pounds of debt.
Property company Intu, which has debts of around £4.7billion, is reportedly seeking £1billion of emergency cash from its investors in a bid to balance its books.
But the company was dealt a blow this week when high-profile Hong Kong investor Link Real Estate pulled out of plans to help with the emergency cash plan, according to the Guardian.
Link and Intu had previously held what were described as “constructive discussions”, along with Intu's biggest shareholder, John Whittaker’s Peel Group.
It is understood that Link was in talks to become the “cornerstone” investor in the fundraising round, working alongside Peel Group, which already owns 27.3 per cent of Intu, Bristol Live's sister site Business Live reports.
Peel Group is still expected to support the equity raise.
Intu said 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.”
A spokesperson for Link said: “Link remains interested in opportunities in the UK, but our negotiations with Intu have not reached an agreement.”
The news comes as Intu wrestles with a tough retail market that has seen the property giant's tenants shutting stores and consumers moving online.
The company has been selling off a number of its assets, including two Spanish shopping centres, to raise money, but is attempting an equity raise to fix its financial problems.
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