The developer today announced plans to boost its financial firepower by way of a share placing.

The board is looking to raise £27.5m from the placing to finance it’s increased development programme, enabling it to secure a number of off-market investment opportunities and assemble portfolios to form the core of potential new asset management vehicles.

The shares have been priced at 515p, representing a discount of 3.3% to the closing mid-market price of 532.5p on Thursday. Several of Rugby’s directors have agreed to subscribe an aggregate of £1.7m for 330,272 of the shares.

David Tye, executive chairman, said: ‘Since our interim results, we have been extremely active and, notwithstanding the high capital values of property in the UK, have continued to identify a number of exciting opportunities to create and enhance value for our shareholders.

We will use the proceeds to acquire assets both for our own balance sheet and to drive the further growth of our asset management business.’