THE rebranding of JSE-listed Intu Properties, formerly known as Capital Shopping Centres, "takes us a notch ahead of our UK competition", says CE David Fischel.

The group, which is listed in both London and on the JSE and which has a significant South African shareholding, announced in January that it was establishing a single nationwide brand for its centres and changing its name, while rolling out digital infrastructure in its malls.

Intu’s directly managed malls are being rebranded with the Intu logo. The original names of the centres will be changed to include the group’s name; for example, Lakeside will be renamed Intu Lakeside.

The group will invest £25m on brand creation and roll-out, as well as on digital infrastructure including providing free Wi-Fi at its malls, and on Intu.co.uk, a fashion-focused, mobile-enabled e-commerce website. The website, which is expected to break even in three years, means Intu could do business when its centres are closed, and "virtual retailers" not represented in Intu’s centres have already signed up.

Mr Fischel says the rebranding is "a bold move" that has already had "a great cultural impact across the organisation".

Intu will be able to deliver more to customers, and retailers are likely to benefit from increased footfall and dwell-time by consumers, while the creation of the single consumer brand will open up national marketing opportunities for Intu.

The group also has a £1bn investment pipeline over the next decade that includes major extension projects of existing assets.

While the scope for new shopping centre developments in the UK is limited, Intu is "not short of growth opportunities", Mr Fischel says.

Last week, Intu raised £280m by placing shares with its London and Johannesburg investors — largely aimed at paying for the £250.5m cash acquisition of Midsummer Place Shopping Centre, at Milton Keynes, about 90km northwest of London.

Mr Fischel says Milton Keynes is a relatively new town with a catchment of 1.3-million people. The rentals in the shopping centre are "fundamentally low" and underpriced against other UK shopping centres, meaning there is room for growth. Other major projects include the redevelopment of the adjoining Charter Place to Intu’s Watford centre, where the group plans to invest £80m.

Also last week, Intu announced the establishment of a new debt-funding platform, a special purpose vehicle for issuing investment grade secured debt.

Get commercial property news by email

Free alerts when we publish — pick a focus or get everything, unsubscribe in one click. Subscribe »