INDUSTRY NEWS

Commercial property giant considers fundraising plan

Land Securities, one of the largest commercial property investment companies in the UK, has confirmed it is considering a rights issue to raise more money.

The real estate investment trust is mulling over the possible rights issue following the slump in the commercial property sector that has hit its business in recent months.

Land Securities holds stakes in several major commercial properties in London and the rest of the country, with Birmingham’s Bullring being one of its flagship projects.

"The board confirms that discussions have been held to consider the merits of a rights issue and any decisions will be communicated to shareholders through the proper channels at the proper time," a statement from land Securities announced.

Analysts have suggested that other commercial property groups may also look to raise cash over the months ahead in a bid to remain in a stable position during the recession.

In November, Land Securities announced half year losses of £1.74 billion, compared to pre-tax profits of £365.2 million in 2007.

It is hoped that the rights issue will help to put Land Securities on a firm footing throughout the global economic turmoil and ensure it can retain its investments in commercial property in London and the rest of the country.
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