Segro is working on plans for a £300m rights issue – its second this year – to fund its proposed takeover of arch rival Brixton.

The company has asked bankers to begin work on a capital raising that would enable it to pay down £485m of Brixton’s debt, which matures next year.

City sources said Segro had still not made a firm decision and cautioned that if it did go ahead with an offer it could still choose to finance the deal using its own resources, or bring in a private-equity partner.

Property experts said, however, that a capital raising was the likely option and Segro’s advisers, JP Morgan Cazenove and UBS, have been instructed to carry out preparatory work.

Sunday Times