Segro joins queue to top up the coffers


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Property group Segro launched a deeply discounted £500million rights issue today, becoming the latest  -  but not the last  -  property company to seek more cash from investors.

Its shares plunged 20 per cent yesterday as speculation spread. The 12-for-1 offer at 10p a share is aimed at cutting debts.

Segro made a loss of £939million for the year after property writedowns.


Ian Coull

Cash call: Segro - led by Ian Coull - is one of many companies seeking millions of pounds from shareholders


Other troubled firms are set to tap City institutions for billions of pounds of cash, with Wolseley perhaps next in line. The plumbing firm plans a £1billion rights issue within days to dig its way out from under £3billion of debt.

A host of other companies hit by the property market crash are also queuing up for cash  -  but fears are growing that there will not be enough money to go around.

Troubled industrial landlord Brixton is reckoned to need as much as £250million, while Covent Garden owner Liberty International could take the figure up to £1billion.

Analysts are also concerned about housebuilders such as Redrow, Taylor Wimpey and Barratt Developments while Branston owner Premier Foods is also in a pickle and rumours suggest it is looking for up to £400million.

Over-borrowed pub companies would also benefit from additional liquidity, so Mitchells & Butlers and Wetherspoon could be a good bet.

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