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.
