intu Watford's financial situation has been given a boost after a major vote took place today.

intu SGS - a property company made up of intu Watford, Lakeside, Victoria Centre, and Braehead - has announced that its creditors have voted in support of financial proposals designed to give the shopping centres greater financial stability.

This result gives intu SGS the "stable and certain" financial platform it needs.

As well as ensuring the "smooth operation" of its four shopping centres as control of the shopping centres is transferred to new management from intu Properties and administrator KPMG, this agreement also provides intu SGS with the appropriate facilities to continue its operations thereafter.

intu Properties went into administration on June 26 after failing to secure a waiver on its huge debts.

All of intu's 17 shopping centres continued to trade with KPMG not appointed over any of the property companies that own the individual shopping centres.

Watford Observer:

On August 4, intu SGS launched proposals with its bondholders and term loan lenders, seeking their agreement to waiver certain events of default (including financial covenants) temporarily or permanently, as applicable, and to provide a stabilised liquidity position via interest deferral.

The proposals also included a new super senior facility of up to £30 million, which will be funded if liquidity needs to be enhanced; and the release of previously withheld cash from certain accounts to enhance liquidity available for operations.

The proposals were agreed.

Watford Observer:

A spokesman for intu SGS said: "The positive vote today underlines the significant support we have from our creditors.

"The proposals that we have agreed today provide us with the stable financial platform to move forward as we continue to recover from the impact of Covid-19. Creditors have also agreed to inject up to £30 million of new money if required, in a further statement of support.

"intu continues to manage these four centres which continue their return to business as usual with 92 per cent occupancy and over 90 per cent of units now open and trading.

"Footfall continues to increase across all four centres with the stand-out performer being intu Braehead, which has almost returned to pre-pandemic levels, highlighting the continued attractiveness of these destination assets to visitors.

"Brand customers have also continued to sign deals, including Tag Heuer at intu Watford and Aqua Park at intu Lakeside. Earlier this week, intu announced that the former Debenhams space at intu Watford has been let to Next for their new beauty hall and home offering."

Watford Observer:

General manager at intu Watford, Vicki Costello, said last week that there has already been "significant interest from several leading businesses" in the vacant John Lewis site.

intu SGS is one such property company preparing to take control of its four assets - Lakeside, Watford, Victoria Centre and Braehead – with full migration expected to take place later this year.

It has appointed Global Mutual to be asset manager of the four shopping centres and Savills as property manager once the transition is complete.

intu SGS is being advised by THM Partners and Linklaters.