Intu Property Acquired By Mike Ashley Amid House Of Fraser Row

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Mike Ashley has bought a new property from Intu amid a public dispute with the retail landlord. He threatened to withdraw 17 of his stores from their shopping centres.

According to the Press Association, the billionaire investor has acquired a long leasehold on the former BHS site that is located in Derby from Intu.

It comes two weeks after the negotiations broke down between Ashley and the landlord regarding four of the House of Fraser stores, which are now set to close in the new year.

At the time, the billionaire owner of Sports Direct stated: “We had multiple meetings with Intu, but we were no further forward after 14 weeks.”

Intu rejected Ashley’s sought reductions in the rent on several of the stores of the House of Fraser. Those that are situated in Hull, Swindon, and Edinburgh are currently set to face the axe, while the future of a store that is located in Bath is also uncertain.

Today, it emerged that the sale of the former BHS property to Ashley was one of the three that Intu parted with.

York House that is located in Nottingham and Bierley Hill that is located in the West Midlands were the other two sites, with the three sold for a total value of £25.25 million.

It comes a day after a takeover bid from a consortium that is led by billionaire John Whittaker had been dropped, causing the share price of Intu to nosedive.

The consortium abandoned its plans to pay £2.9 billion for the shopping centre empire after repeatedly pushing back the deadline for a deal.

Intu informed the investors: “Given the uncertainty around current macroeconomic conditions and the potential near-term volatility across markets, the consortium is not able to proceed with an offer within a timeframe which is manageable within the confines of the code timetable.”

The share price of Intu dropped by more than 36 per cent in early trading yesterday, to 122.4p, and is yet to recover.