London office developer Great Portland Estates is aiming to raise £175 million for new acquisitions throughout the capital.
This week, the firm announced a rights issue with a view to building up a pool of capital to take advantage of plunging prices for commercial property. Shares are on sale for 133p each.
Chief executive Toby Courtauld said: “This is a once in a lifetime opportunity to buy prime assets in the best locations.
“We have identified targets that are on the market but we think there could be three or four times that number that are available.”
Great Portland Estates’ cash call makes it the latest in a long line of property companies who are looking to build up cash reserves. These have so far included Max Property, Hammerson, Liberty International, British Land and Land Investors.
The company, which operates chiefly in the west end, recently announced that the downturn in the commercial property market has resulted in £439 million being wiped off the value of its portfolio.
As a result, the total value of the properties it owns now stands at £1.1 billion – down 28 per cent year-on-year.
Tags: London office space