It has been announced today that Bondholder intu Derby has attracted a 50% partner to its Derby mall in a massive deal worth £186.3m.
Investment firm Cale Street Partners, which is backed by London-based Kuwait Investment Office, will form a joint venture with intu to run the Derby venue.
Last month members of the public-private sector partnership renaissance board met with representatives from Cale Street Partners at MIPIM, the world's leading property event in Cannes. Subsequently Marketing Derby held one-to-one meetings in London with representatives outlining the bigger picture for Derby to assure investors and build confidence in investing in Derby.
Carole Mills, Chief Executive of Derby City Council, said: “The Council is delighted to have played its part to encourage this major investment in the city. It demonstrates how the work that goes on throughout the year to see investment in Derby and also the importance of international activity and development.”
John Forkin, Managing Director of Marketing Derby, said: "This is a big vote of confidence in Derby - these investors really can go anywhere. The investors were very impressed with the public-private partnership here in Derby and we were able to paint a broader vision for the city with many of the developments planned in the area adjacent to intu Derby, including the residential schemes at Castleward and DRI site and mixed development schemes in St Peters Quarter. We hope that that this helped to shape their opinion of Derby."
Matthew Roberts, Chief Executive Designate of intu, said: “We are pleased to announce our new partnership with Cale Street and look forward to working with them at intu Derby.”
“In what is a challenging investment market, this innovative transaction, which is in line with the December 2018 valuation, shows intu is delivering on its strategy of reducing loan to value through disposals and part-disposals. On a pro-forma basis, we expect the impact of this transaction to reduce our loan to value by around one per cent.”