British Land announces £740m rights issue

BRITAIN’S second largest property company British Land today announced a £740 rights issue to underpin its balance sheet and give it the opportunity “to exploit future real estate buying opportunities”.

In the same week that it sold a 50% stake in its Meadowhall Shopping Centre in Sheffield, the group said that the fully underwritten rights issue would be at 225p a share, a 53% discount to its closing share price yesterday.

Chief executive Chris Grigg, said:”Today’s rights issue further strengthens British Land’s balance sheet during a period of market dislocation. Additionally we have enhanced our ability to exploit commercial real estate buying opportunities as they emerge.”

The group also announced its third quarter results today with its portfolio valuation reduced by 13.3% in the three months to December 31 and down 21.7% in the final nine months of last year.

Net asset value per share was 718p, down 31%.

Underlying pre-tax profit in the quarter was down 13% to £63m.