£100 million Broadmarsh redevelopment to go ahead despite huge fall in Intu profits

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Artist's impression of how the Lister Gate entrance to Broadmarsh will look after the redevelopment.

Broadmarsh operator intu has confirmed its commitment to the £100 million transformation of the centre despite reporting a huge fall in profit.

The international retail company has just recorded a £346 million fall in profit in 2016 compared to 2015 in an update to the London Stock Exchange.

Of the £100 million being invested in the Broadmarsh centre in Nottingham, £71 million is coming from intu, with the major part of the work expected to start this year.

The redevelopment is a key part in the ‘Southern Gateway scheme’, which includes a walkway from the centre to the train station and the pedestrianisation of Collin Street.

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Artist’s impression of future view of Broadmarsh car park

The report shows intu made £172 million in Profit in 2016, down from £518 million in 2015.

Company chief executive, David Fischel said: “In a year which will be remembered for its political turbulence, intu is pleased to have recorded a strong set of results with six per cent growth in underlying earnings per share, an increased dividend and stable property values.

“We ended the year with £922 million of cash and available facilities, well placed to pursue our pipeline of active management projects, development and acquisition opportunities both in the UK and Spain.

“While the environment for business this year is likely to be challenging as the full impact emerges of the UK’s EU referendum vote, we are well positioned as we focus on top quality assets in prime locations with high occupancy and strong footfall.

“The dividend increase reflects the results for the year and our confidence in intu’s prospects. We intend to deliver continuing growth in like-for-like net rental income over the coming years.”

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Artist’s impression of future view of entrance on Middle Pavement.

The plans for the Broadmarsh centre were given the go ahead in December, 2015 and include a cinema, a new facade and a complete transformation of the interior.

Councillor Nick McDonald, Nottingham City Council’s portfolio holder for growth, said: “We want to give people more reasons to stay in the city centre and see what Nottingham has to offer, and intu’s work on bringing new retail and leisure vendors to the Broadmarsh Centre aligns with that and will make the city centre even better.”

In total intu will be investing £200 million in development projects in 2017 of which, almost half is being invested in Broadmarsh.

In its statement to the London Stock Exchange, intu also said major extensions to the Victoria Centre are planned for sometime after 2019, with planning already approved as part of a £1.2 billion investment in their current centres.