Grosvenor Britain & Ireland agrees oversubscribed £250 million private placement
Grosvenor Britain & Ireland (‘Grosvenor’) has agreed terms to raise £250 million in an oversubscribed private placement.
The new senior notes, which mature in 10, 15 and 22 years, will be placed with seven UK and US institutions, including three new private placement lenders to Grosvenor, when funding is drawn down (expected to be in November 2018). In the process, Grosvenor received bids from lenders several times over its original target.
The proceeds of the notes will be used to both refinance existing debt and for general corporate purposes, including supporting Grosvenor in the delivery of its key strategies:
- Ensuring the continued success of London’s West End via its 20 year vision for its London estate of Mayfair and Belgravia;
- Addressing housing shortages in London and the UK through:
- expanding its master development business, Strategic Land; and
- its proposed build to rent development in Bermondsey.
Roger Blundell, Finance Director, Grosvenor Britain & Ireland, commented: “The interest and support we received from existing and new investors for this private placement are a huge endorsement of both the strength of our brand and the strategy we are implementing on and off our London estate.
“Our long term, values driven, approach which seeks to deliver commercial and social benefits to all our stakeholders also proved attractive in this placement.”
NatWest Markets and Santander Corporate and Investment Banking acted as joint placement agents on the new issue.
Tony Fordham, Head of Private Placements, Santander Corporate and Investment Banking, said: “The large oversubscription, with strong interest from both existing and new investors, is further evidence that Grosvenor remains one of the most well-received UK issuers in the Private Placement market. The Grosvenor story clearly continues to resonate with investors who value management’s stewardship of their world-class asset base.”
Siobhan Duffy, Head of Private Placements, NatWest Markets said: “We were delighted to have the opportunity to work with Grosvenor to achieve its funding objectives for this transaction. The long term relationships Grosvenor has maintained with existing investors are complemented by new investors in this transaction and demonstrate the attractiveness of the Grosvenor story.”
For more information contact:
Notes to Editors
About Grosvenor Britain & Ireland:
Grosvenor Britain & Ireland creates and manages high quality neighbourhoods that are great places to live, work and visit. Our diverse property development, management and investment portfolio includes Grosvenor’s London estate of Mayfair and Belgravia and other developments in London, Oxfordshire and Cambridgshire.
We are part of the Grosvenor Group, one of the world’s largest privately-owned property companies, which develops, manages and invests in property in more than 60 cities around the world.
As at 31 December 2017, Grosvenor Britain & Ireland had assets under management of £5.2bn.