Grand City Properties, Aroundtown's residential investment arm, has successfully issued a new benchmark size bond with a total volume of €500 mln.
The issuance is the first for the company in over three years, and follows the company's successful perpetual exchange and tender transaction in April 2024.
The new Series Y 2030 bond, with a nominal amount of €500 mln, will carry a coupon of 4.375% and has a tenor of 5.5 years. The bond is expected to be rated BBB+ by S&P.
The Issuance was oversubscribed with a very strong book of over €3.5 bn reflecting more than 7x the issue amount and has attracted very strong demand from high quality investors.
The Issuance proceeds target the repayment of short-term debt, while the liability management exercise targets over €1.4 bn in nominal value of bonds with near-term maturities through a tender process.
Grand City Properties said it was aiming to extend its debt maturity profile, thus reducing refinancing risk and strengthening its balance sheet.
The company specialises in residential real estate, with a focus on value-add opportunities in densely populated areas primarily in Germany and London.
