Warehouses landlord LondonMetric Property has outlined plans to raise £175 million to fund a shopping spree, a move that would help it capitalise on strong demand for space.
The FTSE 250 firm, which plans to raise the money via a share placing and retail offer, gave the update as chief executive Andrew Jones predicted high business need for storage and distribution properties would last beyond the pandemic.
Online retailers are among firms to have experienced high volumes of orders during lockdowns.
Jones said: “The e-commerce backdrop remains compelling, underpinned by insatiable consumer expectations and supply chain challenges that are forcing businesses of all shapes and sizes to improve their infrastructure and become more efficient.”
The boss added: “In a market already characterised by an acute shortage of high-quality warehouse space, all the ingredients are in place for the long-term and experienced investors to continue delivering outperformance.”
In the six months to September LondonMetric recorded net rental income of £63.5 million, up 3.6% from a year earlier.
The group intends to use the raise to “fund a programme of acquisitions and developments that are either committed or under offer”.
