Brixton mulls sale of property to cut debts
Warehouses owner Brixton is looking to sell up to £250 million of properties as it struggles to survive the recession, the Evening Standard can reveal.
The industrial landlord, whose share price has crashed 89% this year, last week fired chief executive Tim Wheeler.
It needs to raise cash to reduce debts and wants money from its shareholders after its peers, including rival Segro, successfully launched rights issues worth a total of £2.5 billion.
But there are growing signs investors do not have the appetite for another fundraising, particularly as it could be several times Brixton's market value of £48 million.
The firm, which owns warehouses at Heathrow and Park Royal, has now turned to asset sales, which could raise as much as £250 million.
Wheeler, who was replaced by investment director Peter Dawson, paid the price for dithering over the rights issue as tumbling property values left the company in danger of breaching its banking covenants.