SEGRO is to raise £340m through a share placing to fund part of its prelet development pipeline.
It has placed up to 74,770,950 new shares at 10 pence per share, equivalent to about 9.9% of the company’s issued share capital.
The announcement came at the same time as Segro announced its trading update for the period since June 30.
David Sleath, chief executive, said: “Occupational demand for modern, well-located warehouse space has continued to be strong over the past two months.
“Although it is too early to assess the longer term impact of the UK vote to leave the EU, it has not yet had a material impact on our operating business: our vacancy rate remains low and we have seen further net absorption of existing space.”
He said there had been limited activity in the warehouse sector over the traditionally quiet summer, but that Segro had exchanged contracts after the EU vote to sell an industrial estate in Heston, west London, near Heathrow, for £79.5m to an international investor.
Share placing
The company has identified £456m of projects over the next two years which will need capital expenditure.
SEGRO also said it had signed prelet agreements valued at £6m of further rent since 30 June, with £600,000 for lettings of space under construction.
It will invest £199m to finish its development pipeline, which will generate £32m of rent when let. At the moment 76% has been let or prelet.
Another £140m may be invested in development projects connected to prelet agreements subject to planning or in advanced negotiations, which are expected to begin in the next six to 12 months.
Urban warehouse development projects may also need £117m of investment, expected to start in the next six to 12 months.
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