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UK’s Segro to raise 340 million pounds to fund property development

commercial property investment

Segro Plc (L:SGRO), Britain’s largest listed industrial property developer, said on Friday it would raise 340 million pounds to fund development projects by placing new shares.

Segro, which operates mainly in the UK, France, Germany and Poland, said that Britain’s vote to leave the European Union in June had not yet had a material impact on its operating business.

The company, whose property portfolio was worth 5.7 billion pounds at the end of 2015, would place 74.8 million shares, or 9.9 per cent of its issued share capital at a price of 10 pence each, to fund an identified pipeline of mainly pre-let developments, it said.

Segro’s chief executive David Sleath told Reuters in February that the company expected to nearly double its development budget this year to 300 million pounds, as a shift towards e-retailing across Europe boosts demand for logistics warehouses. He reiterated this view following the Brexit vote.

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Paul

The author Paul