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LONDON, Feb 16 (Reuters) - Britain's biggest property company Land Securities said on Monday it was mulling a rights issue, just days after two of its biggest rivals unveiled a combined 1.3 billion pounds fundraising plan.
Land Securities said it has held talks to weigh up the merits of an equity capital raising but no formal decision had been made to follow British Land and Hammerson in a cash-call to shareholders.
The statement follows weeks of analyst and market speculation concerning the security of loan terms tied to billions of pounds of property company debts.
A swift UK commercial property correction has heaped pressure on loan-to-value covenants, forcing many companies to seek out fresh equity via rights issues or asset sales to reduce gearing levels.
Data on Friday showed average UK commercial real estate values have tumbled by 37.4 percent since a market peak in summer 2007. (Reporting by Sinead Cruise; Editing by David Cowell) (See www.reutersrealestate.com for the global service for real estate professionals from Reuters)