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Barratt, Redrow seek £856m

publication date: Oct 19, 2009
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HouseHousebuilders Barratt Developments and Redrow have both turned to investors for fresh funds to repair their balance sheets and take advantage of weak property prices to buy land.

Barratt aims to raise £545.5 million pounds via a 1.3 for 1 rights issue. The issue is priced at 100 pence per new share, it will also place a further 72.9 million new shares with investors at 240 pence, raising an additional £175 million.

“It is now an appropriate time to substantially strengthen the company’s balance sheet and reduce its debt levels,” Barratt chief executive Mark Clare said.

“This will also enable the group to develop a number of its existing sites and to take advantage of land purchasing opportunities as they arise.”

Redrow said in a separate statement that it would use a 13 for 14 shares rights issue to raise gross proceeds of £156 million. It will issue 148.6 million shares at a price of 105 pence each. They will use the money for acquisitions.