Grand City Properties, the Frankfurt-listed residential landlord, has issued €600 mln worth of notes to refinance or repay existing debt.
The 2026 notes with a 1.375% coupon had a subscription price of 96.82%. The issue was carried out under the company's €1.5 bn Euro Medium Term Note (EMTN) programme.
The notes will be admitted to trading on the Irish Stock Exchange. EMTNs are cross between corporate bonds and commercial paper.
Grand City said it will use the amount raised to fund the purchase of its €500 mln 2% bond due 2021 and to refinance and/or to repay existing debts.
BofA Merrill Lynch, Citi, JP Morgan and UBS Investment Bank were joint bookrunners for the operation.
Grand City Properties is a specialist in residential real estate, in particular value-add opportunities in densely populated areas in Germany. The company's strategy is to improve its properties through targeted modernization and intensive tenant management, and then create value by subsequently raising occupancy and rental levels.
