British Land set for rights issue

British Land is set to become the latest major UK property company to launch a huge rights issue. The company, the UK’s second largest real estate investment trust, has begun sounding out investors to act as potential underwriters to the issue. It is expected to come to the market fully underwritten, with much of the risk to be taken by its advisors, UBS and Morgan Stanley. Although an issue has been under consideration for some time, the sale of Meadowhall shopping centre in Sheffield on Monday for £588m to London & Stamford, the opportunity fund backed by Abu Dhabi sovereign wealth, has allowed the company to reduce some of its debt burden.