Atria Watford’s owners have made a £445 million deal to secure its centre's long-term financial health.

SGS Group, which also owns Lakeside in Grays, Victoria Centre in Nottingham, and Braehead near Glasgow, will receive the new financing from Lloyds Bank in its “landmark” capitalisation.

It will allow it to repay £444 million to existing creditors, with the remaining £1.3 billion of SGS debt exchanged into equity or equity-like equivalent within the company’s new structure.

All creditors voted in support of the recapitalisation, which is the largest UK shopping centre refinancing since 2019.

A new SGS board has been appointed as part of the deal.

Outgoing chairman Andrea Trozzi said: “The completion of this landmark deal marks a major achievement for SGS and a vote of confidence by Lloyds Bank.

“This is the largest UK shopping centre refinancing in the past five years and means that the group’s long term capital structure is now secured, backed by a supportive investor group and a solid financial and operational performance across all four assets.

Watford Observer: Atria Watford.Atria Watford. (Image: Newsquest)

“SGS is now well placed to continue delivering on its business plan, with further investment and value-driving asset management initiatives planned, as tenants focus their resources on regionally dominant destinations such as these - that deliver the best performance."

Sharing the news, SGS highlighted figures that show a recent boost to shopping centre trade. It said that physical occupancy has increased to 93 per cent.

Footfall has also risen since 2021, rental income rose 22 per cent from 2022 to 2023, and tenants have invested £68 million in upsizing and enhancing stores.

Jaap Tonckens, the incoming non-executive chairman, said: “These leading retail and leisure assets have gone from strength to strength since separating from Intu four years ago due to the excellent work of Alix Partners, the outgoing board members, Global Mutual, and Savills.

“The overwhelming support for the recapitalisation reflects this very strong performance and investor confidence in prime shopping centres.

“I look forward to being a part of the next phase of the SGS journey and working with the new board to build upon the achievements to date.”