Last checked at 
(Alliance News) - Segro PLC on Wednesday said it will increase the size of the fundraise that it had announced on Tuesday, having received significant interest from both existing and new investors.
On Tuesday, the London-based property investment firm announced that it would be raising up to GBP800 million through a share placing and retail offer.
The new equity will allow it to "pursue additional growth opportunities, including new and existing development projects and to take advantage of potential acquisition opportunities which may arise", Segro said.
Its "sizeable" development pipeline holds the potential to deliver over GBP440 million in additional rent, which would require around GBP3.8 billion in development capital expenditure, the company said.
As a result of "strong demand received both from existing investors and potential new holders", Segro will increase the size of the raise to GBP907 million.
The placing and retail offer comprises a total of 110.6 million new shares, representing around 9.0% of the Segro's existing share capital prior to the placing. The placing is being conducted at a price of 820 pence, a 3.4% discount to Segro's Tuesday closing price.
Segro said that the dilutive impact of the placing and retail offer represents around 8.3% of the company's issued share capital.
Chief Executive Officer David Sleath said: "We appreciate the support from our investor base for this equity placing and the confidence it demonstrates in our business. In addition to the profitable growth opportunities within our development pipeline, we expect further exciting opportunities to emerge in the coming months which this additional capital will help us to deliver".
Shares in Segro were down 1.2% at 839.40 pence each in London on Wednesday morning.
By Hugh Cameron, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024 Alliance News Ltd. All Rights Reserved.