Ado Properties, the listed Berlin-based residential landlord, has completed a €400 mln bond issue to fund some €300 mln of new acquisitions and to refinance existing debt.

ado

Ado

About €80 mln of the net proceeds will be used to repay existing loans with maturities up to 2019. The remaining proceeds will fund Ado's acquisition pipeline.

'We see a continuous deal flow of new opportunities in line with our past experience and are confident we can deploy this additional capital over the next six to 12 months into new accretive acquisitions,' said Ado's CEO Rabin Savion.

This is the first time the company has tapped the bond market. The unsecured, fixed-rate corporate bonds mature on 26 July 2024 and bear an annual coupon of 1.5%.

The bonds were offered to institutional investors after several days of a pan-European road show. Demand was strong, resulting in a 2.25 times oversubscribed order book.

On 17 July, Moody's Investors Service assigned a first-time issuer rating of Baa2 to Ado. Moody's said the rating reflected the company's focus on the stable rental housing market in Germany, its moderate leverage and its strong fixed charge coverage. In line with the corporate rating, a similar rating of Baa2 was assigned to the bond.

Ado owns and manages 17,650 apartments in almost all districts of Berlin.