British Land, the UK real estate investment trust, has raised £300 million (€327 million) through the issue of its first sterling bond.
The notes carry a coupon of 2.375 percent and will mature in 2029. The UK REIT said the new issue increases both its diversity of funding and maturity.
“We are pleased to have raised this unsecured debt in the sterling market, where investor demand has reflected confidence in our strategy. The debut issue increases the total debt raised over the last five years to £4.5 billion,” said Lucinda Bell, CFO of British Land.
Barclays Bank, Lloyds and NatWest acted as joint active lead managers. HSBC, Bank of Tokyo Mitsubishi and Santander were joint passive lead managers. Credit Agricole and Royal Bank of Canada were co-managers.
British Land’s UK CRE portfolio is focused on retail across the UK and London offices.
The firm’s retail strategy is to invest in regional and local multi-let centres and the retail segment accounts for 48 percent of British Land’s property portfolio. The firm’s office assets, which make up 49 percent of its portfolio, include three office-led campuses in central London as well as standalone buildings.
British Land’s portfolio, valued at £19.1 billion as at 31 March 2017, makes it one of Europe’s largest listed real estate investment companies.