Workspace Group is aiming raise £87.2m from an issue of new shares.
In what could be the first of series of cash calls for listed property companies Workspace today launched a five-for-one rights issue. The company is selling shares at 10p, which reflects a 69% discount to the share price on the day before the share issue was announced.
Workspace, which specialises in redeveloping and letting business space to small and medium-sized enterprises, said the issue was fully underwritten and would allow the extension of a key August 2010 credit facility to November 2012.
‘In the context of the current financial climate, where the perceived outlook for property values has been gloomy, obtaining capital and bank financing has been very tough, said chairman Tony Hales.
‘We can now focus all of our efforts on the operational performance and cash generation of the business in this challenging economic environment.’