Segro has announced the successful placement of approximately 拢340 mln (鈧�400 mln) worth of shares to fund its development pipeline.
In total, around 74.8 mln shares were placed, representing 9.9% of its issued share capital, to fund future schemes, most of which are pre-let.
The company said it had identified projects which are likely to cost around 拢456 mln over the next two years, including its current development pipeline requiring an 拢199 mln investment and a potential pipeline costing 拢140 mln.
Further speculative, urban warehouse projects are also likely to start in the next 6 to 12 months totalling approximately 拢117 mln.
Segro said occupier demand for modern warehouse space in Europe鈥檚 main urban industrial and logistics markets is proving resilient in the aftermath of the UK鈥檚 referendum on its EU membership. New rents on review and renewal in 2016 were 4.8% higher in the UK (4.6% for H1 2016) and 0.7% lower (1.7% lower for H1 2016) in Segro's continental European portfolio.
The company revealed that disposals are likely next year, providing further investment funds.
Merrill Lynch International and UBS acted as joint bookrunners and corporate brokers on the placement.
