UK Real Estate Turns to Funding

With economies across the globe dealing with the impact of COVID-19, smaller entities are looking towards raising funding to deal with the losses through other avenues. In UK’s housing market, agents, housebuilders, and REITs are the first to go to their shareholders for new equity.

Brokerage company, Peel Hunt, reported that London-listed companies have already raised £3 billion through ”COVID-19-related equity raises” since March. 

Inland Homes, a homebuilder firm, raised £9.9 million most recently and real estate agency, Foxtons raised £22 million for “sufficient liquidity and flexibility” in case of a prolonged lockdown. 

The largest of these investments was enacted by the events group, Informa, equalling £1 billion. 

A representative of Informa said: 

“Whilst the power of the group’s B2B events businesses continues to be evidenced by customer rebookings and low demand for rebates, it is now clear that the path to the other side of the Covid-19 global pandemic will be more gradual and phased than initially thought.”

Other big hitters in the UK market are turning to the government to aid in employment payouts and other business relief. Smaller entities look towards acquisitions in hopes larger companies will swoop in to pick them up. Portals have also looked into selling their assets just to make ends meet while the pandemic rages on. 

Though companies are scrambling to acquire the money needed to continue business, it seems that not one solution is the answer, but a combination of many to keep up with the ever-changing economic climate.