An offer to buy shopping centre owner Intu has been withdrawn after months of negotiations as a result of “uncertainty” in the market.
The consortium bidding for Intu comprised Intu’s largest shareholder, Peel Group, Saudi conglomerate Olayan Group and Brookfield, a Canadian private equity group.
The group had been given three extensions to the original offer deadline of 1 November.
The consortium has announced that given “the uncertainty around current macroeconomic conditions and the potential near-term volatility across markets”, it is not able to proceed with an offer within a reasonable timeframe.
Intu stated it remained “confident of its commercial prospects”.
The shopping centre owner has a £9.6bn portfolio of 17 prime regional centres in the UK (£8.8bn) and three in Spain (£800m), that attract around 400 million annual customer visits.
Intu anticipates that its full-year rental income will grow between 0% and 1% in 2018, in a “particularly challenging” period for UK retail.
The shopping centre owner signed 84 leases in the period between 1 July and 23 October 2018, which will deliver £15m annual rent revenue.