SEGRO eyes £800m raise through share placing and retail offer
SEGRO has set out plans to raise around £800m through a share placing and retail offer, which it plans to use to pursue “additional growth opportunities”.
The new ordinary shares will be priced at 10p each. The proposed placing and retail offer represent around 7.5% of the company’s issued share capital.
The warehousing giant said the new capital will allow it to secure opportunities such as new and existing development projects, and to “take advantage of potential acquisition opportunities which may arise” while “maintaining a strong balance sheet”.
SEGRO has set out plans to raise around £800m through a share placing and retail offer, which it plans to use to pursue “additional growth opportunities”.
The new ordinary shares will be priced at 10p each. The proposed placing and retail offer represent around 7.5% of the company’s issued share capital.
The warehousing giant said the new capital will allow it to secure opportunities such as new and existing development projects, and to “take advantage of potential acquisition opportunities which may arise” while “maintaining a strong balance sheet”.
SEGRO said that it expected to see opportunities for “potentially attractive” asset acquisitions as the investment markets stabilise.
It added: “SEGRO believes that it has a significant competitive advantage here given its established local platforms and stakeholder relationships, strong balance sheet, significant liquidity, and its unsecured funding model.”
It expects to invest around £600m on development and infrastructure this year and a similar amount in 2025.
As well as investing in its development pipeline, it underlined infrastructure needs at a small number of sites within its landbank.
The largest of these is an “exceptionally rare” site in Radlett that requires some £350m of investment to facilitate construction of a rail-connected, big box logistics park from 2026.
SEGRO also intends to expand its data centre offer. It previously identified 24 sites within its landbank that collectively offer the potential for 1.2GW of data centre capacity across the UK and Europe.
The listed landlord last raised equity in 2020. Since then it has deployed £2.2bn in development capital expenditure, including infrastructure, £3.1bn on acquisitions including land purchases, and made £1.4bn disposals.
For more on SEGRO’s growth ambitions see: SEGRO’s Sleath on the path to growing rents by 50%
Image via FTI
