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Development Securities launches £100m rights issue

Office developer Development Securities has launched a rights issue to raise nearly £100 million.

The firm is raising the money by selling 25 million new shares at 240 pence a share.

The cash call, fully underwritten by Collins Stewart, will nearly double the size of the firm currently valued at £107 million.

Development Securities said it had received strong support already from existing and new investors for the fundraising, which will help the firm capitalise on opportunities early in the property development cycle and enhance its investment portfolio.

A statement said: “Current market conditions, and the constraint on bank lending to development projects, are resulting in a number of smaller, shorter term opportunities.”

At the end of 2008 the firm reported an investment portfolio valued at £134.1 million.