Â鶹ӳ»­

British Land confirmed on Thursday that it plans to raise £740 mln (EUR 823 mln) net of expenses in a 2-for-3 rights issue. The widely expected cash call by the second-largest real estate investment trust (REIT) comes days after one of its peers, Hammerson, announced a similar move.

British Land also released its results for the third quarter to 31 December 2008 on Thursday. The company reported a net loss of £1.6 bn in its third quarter, up from £1.3 bn a year ago. Net asset value dropped 31% to 718 pence, as the valuation of the company’s property portfolio plunged 13.3% in the third quarter to just under £10.2 bn. Over a nine-month period, the valuation has declined 21.7%.

British Land said it intended to issue up to 340.9 million new shares - representing 67% of the existing issued capital and 40% of the enlarged share capital after the rights issue - through a 2-for-3 rights issue at 225 pence per new share.

CEO 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 rights issue is fully underwritten by Morgan Stanley Securities Limited, UBS Limited and Euro Lights Private, an affiliate of GIC Real Estate. The rights issue is subject to approval by shareholders at a General Meeting to be held on 3 March 2009.