Segro share issue to boost expansion

Listed industrial property developer Segro has announced the issue of 74,770,950 new ordinary shares, which is expected to help raise approximately GBP 340 mln of gross proceeds to be used to fund future development opportunities. The new shares represent app. 9.9 pct of the issued share capital of the developer. The development pipeline of Segro now includes a number of pre-leased projects that are expected to be launched in the next six to twelve months and will require a total additional expenditure of app. GBP 140 mln, as well as a number of potential speculative developments that can be started at short notice and will involve a total capital expenditure of around GBP 117 mln, the company has announced. “Occupational demand for modern, well-located warehouse space has continued to be strong over the past two months. Although it is too early to assess the longer term impact of the UK vote to leave the EU, it has not yet had a material impact on our operating business: our vacancy rate remains low and we have seen further net absorption of existing space. In addition, since June 30th, 2016 we have signed unconditional pre-lease agreements for 188,600 sqm of space across Europe, which will generate GBP 6 mln of new annualised headline rent, and the pipeline of near-term opportunities remains encouraging,” commented Segro chief executive David Sleath in the announcement.