Two of the largest real estate investment trusts in the UK are set to announce rights issues this week to raise up to £1 bn (EUR 1.1 bn) to strengthen their balance sheets.
Two of the largest real estate investment trusts in the UK are set to announce rights issues this week to raise up to £1 bn (EUR 1.1 bn) to strengthen their balance sheets.
Various media sources reported at the weekend that Hammerson, the fourth largest UK REIT which operates mainly in the retail sector in the UK and France, is to unveil plans on Monday to raise up to £600m from investors. The Sunday Telegraph newspaper said the rights issue will be underwritten by Citigroup and Deutsche Bank. Institutional investors have shown enthusiasm for the move, according to the paper.
British Land, the second largest UK REIT, is expected to announce a £500m capital raising as it unveils its third-quarter figures on Thursday. Sources told the Daily Telegraph that the details of the rights issue have yet to be finalised. British Land is also expected to unveil asset sales, including the disposal of half of its stake in the Meadowhall shopping mall in Sheffield to AIM-listed opportunity investor London & Stamford and an Abu Dhabi firm.
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