Lendlease has announced a £600m equity raise to strengthen its balance sheet in the face of Covid-19 market challenges.
The developer said it will raise £500m in new equity via a fully underwritten share placement and a further £100m through a non-underwritten share purchase plan.
It said the fundraise would boost liquidity to £2bn, supporting its £58bn global development pipeline.
Lendlease has also initiated a phased reopening of construction sites in London, following a shutdown at the end of March.
Chief executive Steve McCann said: “This equity raising, coupled with the actions we have already taken, will strengthen the group’s balance sheet position during this economic environment.”
The company said more than 90% of urbanisation projects and more than 95% of its land lot pipeline had been secured on “capital-efficient terms” limiting financial risk in market cycles.
In the UK, major projects include its £1.5bn build-to-rent push, with projects at Elephant Park, SE1, as well as the £8bn Thamesmead Waterfront regeneration and £2bn Smithfield Market joint venture with Birmingham City Council.
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