Grosvenor Limited (the “Company”) has raised £90m through an issue of long-term unsecured loan notes. This follows a successful issue of £125m in early 2011. The bond issue further diversifies the Company’s funding sources and will help finance forthcoming investment in its London Estate.
The issue was priced on Wednesday 18th July to yield 3.91%. Closing is expected in October 2012.
The Company, the Britain and Ireland business of Grosvenor, the international property group, placed the issue in the US private placement market to a select group of investors based both in London and the US.
Roger Blundell, Finance Director of Grosvenor Britain & Ireland, said: “We monitor all funding sources available to us and look to access the best market for our needs at the right time. With interest rates remaining very competitive, we felt this was a good moment to follow-on from our successful issue last year with another private placement.
“The funds will be principally used to continue our programme of investment and development in the London estate. We are delighted that investors have shown appetite for this issue; attracted by our conservative financing, low gearing and the strength of our covenant.”
The financing, which was fully denominated in sterling, consists of £60m of 10 year notes maturing in 2022 with a coupon of 3.38% (Gilts + 190bps) and £30m of 25 year notes maturing in 2037 with a coupon of 4.97% (Gilts +
RBS acted as sole book-runner on the deal.
For more information contact:
Naomi Curtis/Sorrel Basher, Press Office
020 7312 6479/6101
Notes to Editors
Grosvenor Britain & Ireland’s strategy emphasises the creation and management of successful places, with a particular focus on high-end residential and mixed-use. The core portfolio comprises 300 acres of Mayfair and Belgravia in London, which first came into the Grosvenor family in 1677. Ownership and active management of its London estate remains at the heart of Grosvenor Britain & Ireland’s strategy. Investment assets comprise the largest part of its portfolio. Grosvenor Britain & Ireland also undertakes development across London, and in selected city centres around the UK. As at 31 December 2011, Grosvenor Britain & Ireland had assets under management of £4.2bn.