This week has seen a flurry of capital-raising announcements from an unlikely source - Russian property.
First, distribution warehouse landlord
O1 Properties' scale is notable - with a portfolio of eight offices and two development sites worth $2.1bn in total, the company would vault straight into the FTSE 350. But this scale may be a problem. The company wants to raise $425m, a substantial sum in a tough market for fundraising.
It has no obvious peers apart from Raven Russia, whose shares trade on a 16 per cent discount to book value and a 5 per cent dividend yield. O1's management will have to convince investors that it is a higher-quality investment or else dilute existing shareholders by raising funds at a discount. Much will depend on what kind of income it offers. No details have been disclosed, but it could be high - prime office rental yields were 8.75 per cent in Moscow at the end of 2011, says broker CBRE.
It's worth watching O1, which could be a useful addition to an income portfolio. Raven Russia's shares have gained 18 per cent year to date and are now 6 per cent up on our tip (Buy, 58p, 1 Sep 2011. Raven is still worth buying for generous and growing dividends.