The Trafford Centre in Manchester has been taken over by its lenders after they failed to secure a buyer for the shopping mall.
Canada Pension Plan Investment Board confirmed it acquired ownership of the Trafford Centre after “no viable bids were received”.
CPPIB Credit provided a £250m loan to Intu Trafford Centre Group (UK) Limited in 2017. The mall, previously owned by shopping centre company Intu, was then placed into administration in June 2020.
CCIB said: “In the absence of alternative sources of funding and the unsuccessful sale process, CPPIB Credit has exercised its rights to acquire the shares in ITCG and the ownership of the Trafford Centre.”
The Trafford Centre is one of the UK’s top five shopping centres with more than 30 million visitors per year.
CPPIB Credit said it will evaluate the Trafford Centre’s “complex capital structure” to ensure it “supports the return to long-term viability”.
Geoff Souter, managing director, head of real assets credit, CPPIB Credit said: “While conditions for retail in 2020 have been very challenging, we are able to take a long-term view and believe that, with strategic management and investment, the Trafford Centre has strong prospects. An immediate priority is to support the Trafford Centre’s management, ensuring continued optimal operation of the Trafford Centre, and to appoint a long-term expert operating partner.”
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