In the hugely-discounted rights issue, eight shares will be offered for five at 270p, instead of the 568p closing price yesterday.
Group chief executive, Francis Salway commented: “We have a good track record of creating value for shareholders through the property cycle and have decided to seek further capital at this stage to ensure that the Company's balance sheet is appropriately structured. This will help protect the business against the downside risk of further falls in property values and thereafter position the business to exploit attractive market opportunities.”
The current downturn is hitting commercial property companies particularly hard, as credit tightens and demand for office space plunges. Since summer 2007, prices have fallen 37.4%, according to leading index IPD.
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