Property Firms Will Ask for Cash ; Market Report

Daily MailJanuary 14, 2009

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Summary


WATCH out for a glut of rights issues in the property sector this year. Analysts expect all the major companies will have to pass the hat around to see them through a difficult period as asset values fall and pressure builds on debt covenants.

KBC Peel Hunt's Keith Crawford yesterday said many clients seemed resigned to the sector being recapitalised at the expense of the poor old shareholder.

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Extract


Property Firms Will Ask for Cash ; Market Report

The last fundraising spree came in 1992-4, a period which successfully anticipated a big recovery in share prices in 1995-7.

The issuers correctly loaded up for that opportunity, but Crawford warns that in the curre...

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