Warehousing firm LondonMetric on Tuesday outlined plans to raise up to £100 million via a share placing, to capitalise on rising demand for space and more buying opportunities.
The FTSE 250 logistics property firm said the issue of approximately 56 million new ordinary shares would help raise funds that could be used towards a number of deals.
That includes £30 million for the purchase of an identified pipeline of opportunities that comprises a warehouse in London and a sale and leaseback portfolio.
Chief executive Andrew Jones told the Evening Standard: “We are very bullish on London warehousing.”
He predicts demand by retailers and other businesses for storage and distribution space to cope with online orders will continue after the Covid-19 lockdown eases.
Jones said: “I think as a result [of the lockdown], more and more people are being forced to use online, many for the first time. A lot of them will stay with it.”
In a company statement, Jones added: “These uncertain times are starting to give rise to quality investment opportunities that are seldom available in a normalised market. Through our occupier relationships we have identified some excellent assets, at attractive pricing, which would further strengthen our portfolio's long term income characteristics.”
He said: “Not only do we expect to see further opportunities arise but also we expect the pitch to be much less crowded than before."
JP Morgan and Peel Hunt are advising on the placing.
