Land Securities has confirmed that it is considering launching a rights issue. The announcement follows media reports suggesting the company intended to raise up to £750 mln (about EUR 836 mln) from investors to pay down debt.
Land Securities has confirmed that it is considering launching a rights issue. The announcement follows media reports suggesting the company intended to raise up to £750 mln (about EUR 836 mln) from investors to pay down debt.
Land Securities, the largest UK real estate investment trust (REIT), said in a short statement on Monday: 'The board confirms that discussions have been held to consider the merits of a rights issue and any decisions will be communicated to shareholders through the proper channels at the proper time.'
The Financial Times newspaper said that the details of the fund raising had not been finalised and the board had yet to sign off on the move. But the paper said that it was possible that a heavily discounted rights issue could be launched as early as Thursday after shareholders were consulted.
British Land and Hammerson - respectively the second and fourth largest UK REITS - have already unveiled similar plans. Other REITS are also believed to be planning to raise money from investors to reduce debt to avoid breaching their loan-to-value covenants.
