Workspace Group, the business space developer, has become the first real estate investment trust to sound out investors about an equity raising to secure its balance sheet in the face of a worsening property market.

The company is considering a number of options to prevent a possible breach of debt covenants, including asking shareholders to buy more equity. It is also talking to creditors about revising the terms of its debt.

Although Workspace has not yet breached any loan-tovalue covenants, analysts warn that the company could do so as early as this summer unless it takes remedial action, as prices for commercial property continue to fall.

It also has £50m in debt due for refinancing this summer.

Financial Times