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Segro to raise £650 million through private share placement

Segro

Property investment firm Segro has announced that it will raise £650 million through a private share placement to pursue “opportunities” across the UK and Europe

Property investment firm Segro has announced that it will raise £650 million through a private share placement to pursue “opportunities” across the UK and Europe.

Segro said in a statement released after markets closed, the new equity would allow it to “take advantage of additional investment opportunities across the UK and Continental Europe through  further, mostly pre-let, development projects”.

The property investment firm is also looking to acquire land and investment assets.

The firm also released a trading update which stated that new lettings and pre-let development agreements were ahead of expectations than they were before the pandemic. They noted that the virus outbreak had spurred the adoption of new technology and e-commerce, which has helped its urban warehouse portfolio.

E-commerce volumes in April amounted to 31% of retail sales – a 16% rise.

The board has said Segro would be able to invest over £1 billion into development activity and additional acquisitions across 2020 and 2021.

The firm said yesterday that it had purchased Perivale Park – the 34-acre site in west London – for £202.5 million.

Segro also said it would continue to target a payout ratio of 85% to 95% of adjusted profit after tax, as it intended to declare an interim dividend of 6.9 pence per share.

Chief executive David Sleath said: Our strong, primarily pre-let, development pipeline across the UK and Continental Europe reflects the demand from customers looking to grow.

David said, our list of additional near-term pre-lets, which is approximately double the size of a year ago, and our well-located land bank mean we are well-placed to make further progress in the months ahead.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

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