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London landlord Great Portland Estates (GPE) today tapped shareholders for £175 million to fund a spending spree in the capital.
The firm launched a rights issue at 133p a share to take advantage of "once in a lifetime opportunities" in the recession. It gives GPE, which owns offices and shops in the West End, the City and Southwark, a war chest of £640 million to snap up bargains across London.
However, chief executive Toby Courtauld warned commercial property prices in London still have further to fall even after a slump of 42% since the peak in June 2007.
"We do not think the market is bottoming out but we are finding attractive opportunities," he said. "We are digging in the undergrowth for things which are mispriced. We believe that UK economic conditions are unlikely to return to growth before the second half of 2010."
The rights issue, which raises £166 million after £9 million of fees, came as GPE reported losses of £436.2 million for the 12 months to the end of March against a deficit of £3 million last year. The property portfolio fell 28% to £1.13 billion.
