Segro this morning confirmed that it was considering raising new equity, having renegotiated loan covenants last week. The news sent its shares down 16% to below 90p this morning.
The industrial REIT said last week that it had signed agreements with its banks to increase the maximum gearing covenant on its £1.7bn debt from 125% to 160% to provide ‘additional headroom’ in the difficult market.
Last week Liberty International was widely expected to announce a rights issue, but did not.
If Segro turns to its shareholders for cash, it could go head-to-head with rival Brixton in the race for equity, following the £2bn raised by Hammerson, British Land and Land Securities.