The government is to consider whether to allow the payment of stock dividends by real estate investment trusts, a measure that would help alleviate the strain on balance sheets in the struggling listed property sector.

Workspace, the office and workplace developer, said it was to seek authority to offer shareholders dividends in shares as an alternative to cash as part of a package of measures to recapitalise, including a £87.2m rights issue and a renegotiation of banking facilities.