Housebuilder plans cash call when full-year results are announced to reduce debt pile and fund land purchase
Housebuilder Barratt Developments will unveil a £500m issue of new shares in the company with its full-year results at the end of the month, according to reports.
The firm is said to be on the lookout for discounted land as well as wanting to reduce its £1.3bn debt pile. Barratt has recently reported higher sales and a better pricing environment.
Competitor Redrow is also thought to be thinking about a rights issue. The firms would follow Taylor Wimpey, which raised £510m through a rights issue in May.
There has also been a £60m share placement from Bovis, a £50m cash call from Berkeley Group and a £44.8m capital raising by Bellway.