Segro to raise £650m through private share placement to pursue ‘opportunities’
Property investment firm Segro has announced it will raise £650m through a private share placement to pursue “opportunities” across the UK and Europe.
In a statement released after markets closed, Segro said 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”. It is also looking to acquire land and investment assets.
The firm simultaneously released a trading update saying that new lettings and pre-let development agreements were ahead of where expectations were before the pandemic hit. They noted that the pandemic had accelerated the adoption of new technology and e-commerce, which has helped its big box and urban warehouse portfolio.
E-commerce volumes in April represented 31 per cent of retail sales, a 16 per cent increase.
The board has said Segro will be able to invest more than £1bn of capital into development activity and additional acquisitions across 2020 and 2021. Yesterday the firm said it had bought the 34-acre site, Privale Park, in west London for £202.5m.
Segro also said it would continue to target a payout ratio of 85 per cent to 95 per cent of adjusted profit after tax, adding that it intended to declare an interim dividend of 6.9 pence per share.
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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.”
“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.”
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