Firms seek funding for new construction plans
23rd September 2009
The companies are seeking to generate approximately £150 million and £720.5 million respectively in order to improve their balance sheets and put themselves in a better position to be able to acquire quality land for development.
Barratt also said the rights issue would help it to develop existing sites, while Redrow claimed its fund-raising move would give it increased flexibility financially.
In addition to the share offering, Redrow revealed its current business strategy, which involves a focus on the New Heritage Collection - a return by the company to delivering housing for families.
Steve Morgan, the firm's chairman, said there was a "need to enhance our ability to acquire land".
"This is all part of our strategy to steer the business back to delivering a much improved return on capital employed," he added.
