Public companies from the real estate sector in Europe, most of them located in the U.K., have attracted more than 4.6 billion Euros of fresh capital since the beginning of 2009 and this trend is expected to continue, indicate the results from a recent survey conducted by PropertyEU.
According to the survey, at least nine more publicly traded real estate companies from France, Italy, Belgium, Finland, and the U.K. are at the end of their fund raising cycle expected to bring 1.5 billion Euros of new capital.
Following the recent fund raising campaigns of the Dutch companies Corio (258 million Euros raised) and NSI (40 million Euros raised), the Italian group Pirelli RE is expected to be the next one to begin fund raising, writes PropertyEU. After ending the first quarter with a loss of 15 million Euros, Pirelli RE has announced that it intends to make a large-scale share offering at a discount price beginning this June.
In most cases, newly acquired funds are used to fill the gaps in the balance sheets of the companies. However, some companies intend to use the money for projects’ acquisition and development.
Recently the Belgian group WDP, which specializes in the development and management of logistics centers, has announced that it intended to raise 72 million Euros of which 37 million Euros would be used for the financing of new projects. The remaining part of the money raised will serve to repay the company’s short-term debt obligations.
Earlier this week the real estate advisories CBRE and JLL announced that they intended to raise fresh capital at the amount of 800 million USD, which will be used to repay existing obligations. |
