St Modwen share sale to shore up finances

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

The firm, which owns Elephant & Castle shopping centre in Southwark, will raise £107.4 million by selling nearly 80 million new shares at 135p each.

That is a considerable discount to the company's closing price last night of 219¼p, and came as St Modwen announced an agreement with its bankers to deal with its debts of £422 million. St Modwen shares were down 35¾p to 183½p today, valuing the firm at £220 million, having peaked at 715p in April 2007 and sank as low as 67p in March this year.

Chief executive Bill Oliver said the share sale and banking deal gave the firm "headroom" to weather the downturn as well as "fire power" to invest in undervalued properties.

London-based property firms including Land Securities, British Land and Hammerson have raised over £2 billion from shareholders.