UK property developer Development Securities has unveiled a fully underwritten share issue to raise proceeds of around £100 mln (EUR 117 mln). The company said the anticipated net proceeds of approximately £94 mln will be used to capitalise on opportunities early in the property development cycle and enhance the Group's investment portfolio.
UK property developer Development Securities has unveiled a fully underwritten share issue to raise proceeds of around £100 mln (EUR 117 mln). The company said the anticipated net proceeds of approximately £94 mln will be used to capitalise on opportunities early in the property development cycle and enhance the Group's investment portfolio.
The issue price of 240p per share represents a 9.1% discount to the closing middle-market price of 264p per ordinary share on 23 June 2009.
In a press release, the company said that its directors believe 'that the decline in [UK property] values will continue further and is reflected in the current discounts at which UK property companies' shares are trading to their historical net asset values. However, given the rapid rate of this decline in values, the Directors believe that properties potentially suitable for development or refurbishment, or to enhance the company's investment portfolio, may be available to be purchased at attractive levels.'
The new shares are being offered subject to shareholder approval at an extraordinary general meeting to be held on 10 July 2009.
