SEGRO has successfully raised £340m via a share placing to fund development projects.
The industrial property specialist announced the completion of the placing on Friday afternoon.
The company, which has a property portfolio worth £5.7bn, said it had placed about 74.8m shares, or 9.9% of its issued share capital at a price of 435p each, mainly to fund an existing pipeline of developments. Around 76% of this is pre-let.
SEGRO added that it had £140m of potential investment in pre-let developments and £117m in speculative urban warehouse developments, which it plans to start in the next six to 12 months, subject to favourable occupier markets.
The company stated: “Investment acquisitions are likely to be modest since, in most markets, we believe the risk-adjusted returns available to us through development are more attractive than from buying existing, built assets. However, we will remain alert and open to acquisitions where returns are attractive and in markets where we are seeking additional scale.”
In a trading update earlier in the day, SEGRO also revealed that since 30 June the company had signed pre-let agreements for 2m sq ft across Europe, which it expected would result in £6m of new annual rental income.
The group added it expected to make disposals over the coming year, which will provide further funds for investment. These will primarily be big box warehouses and land in continental Europe from its SELP joint venture, along with other tactical disposals of mature assets.
Merrill Lynch International and UBS acted as joint bookrunners on the placing.
17 February 2017
11 January 2017
19 October 2016