Regenero, a joint venture between construction group YIT and real estate developer-investor HGR Property Partners, said on Friday that it has financed a real estate development project in Keilaniemi, a southeastern district of Espoo in Finland, via a €100 mln bond issue.
The bond - the first large real estate development bond in Finland - matures in May 2021 and carries a coupon of 4% per annum.
The proceeds will be used for repaying acquisition debt and property development, including the renovation and refurbishment of the existing premises as well as commercial development leveraging on the overall development of the Keilaniemi area.
Regenero bought the asset in October last year. It involves the former headquarters of energy group Fortum for a total lettable area of 35,000 m2 over 20 storeys as well as additional land plots with development rights.
Regenero plans to redevelop the scheme and add new office space. Financial admin outsourcing and software company Accountor has already agreed to occupy 11,000 m2 in the complex under a 10-year lease.
Danske Bank acted as the lead manager and sole bookrunner for the bond issue. Taaleri Capital acted as the financial adviser of the issuer.
