A dozen listed real estate firms in Europe - led by the UK - have raised more than EUR 4.6 bn in new capital since the start of the year, and the trend looks set to continue. A study by PropertyEU shows that at least nine other listed property companies - in France, Italy, Belgium, Finland and the UK - are putting the finishing touches to equity raisings with a total volume of EUR 1.5 bn.
A dozen listed real estate firms in Europe - led by the UK - have raised more than EUR 4.6 bn in new capital since the start of the year, and the trend looks set to continue. A study by PropertyEU shows that at least nine other listed property companies - in France, Italy, Belgium, Finland and the UK - are putting the finishing touches to equity raisings with a total volume of EUR 1.5 bn.
Following recent capital raisings by Dutch retail specialist Corio (EUR 258 mln) and NSI, a smaller Dutch firm (EUR 39.5 mln), Italy's Pirelli RE looks set to hold the next biggest fund-raising. After unveiling a EUR 15 mln loss for Q1 2009, the firm said it would tap the market in June for €400 mln in a heavily discounted share offer. In most cases, proceeds are being used to bolster companies' balance sheets. But some also plan to use the new capital for acquisitions or to finance development.
On Thursday, Belgian-based warehouse specialist WDP has said it intends to raise almost EUR 72 mln, of which EUR 37 mln will be used to finance new projects. The remainder will be used to reduce short-term debt.
The research on capital raisings by European listed property companies appeared in PropertyEU Week Edition on 10 June. Click on the link below to subscribe to the PropertyEU package.
