Manchester’s Trafford Centre acquired by Canadian pension fund

Manchester’s Trafford Centre has been acquired by The Canada Pension Plan Investment Board (CPPIB) following the collapse of the shopping’s previous owner Intu earlier this year.

British property giant Intu fell into administration in June following failed crunch talks with its lenders, though its shopping centres have continued trading since then.

CPPIB was a key lender to Intu before its collapse, providing a 250 million pound facility to Intu Trafford Centre Group Limited.

When Intu collapsed in June, a sale process was initiated for the Trafford Centre, however, no viable bids were received.

CPPIB Credit has therefore now exercised its rights to take ownership of the Trafford Centre.

“The Trafford Centre is one of the U.K.’s top five shopping centres, welcoming more than 30 million shoppers annually, and counts many leading global retailers among its occupiers,” Geoff Souter, managing director, head of real assets Credit, CPPIB Credit, said in a statement.

“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.”