Sector leaders Segro and Vonovia successfully issued €3.65 bn, but the bond pricing reflected the volatility in financial markets due to Ukraine and rising inflation.
Segro’s €1.15 bn green bond priced at a 1.25% coupon for a 4-year tranche and 1.875% for 8-year money. The logistics REIT issued last September at 0.5% for a 10-year maturity.
Vonovia closed three social and green bond issues this week totaling €2.5 bn under a framework adjusted to the new EU taxonomy. The blended pricing across a spread of maturities from 3.85-10 years was 1.875%.
Real estate debt expert Dr Nicole Lux of London’s City University said that the cost of debt on the public market in February moved out by 40bps for the €AA IBOXX index and by 60bps for the €BBB.
The rising cost of borrowing has not yet affected real estate sentiment. Plenty of investors are deciding to put assets on the market. In Germany, JP Morgan is following Nuveen in putting a large, prime building up for sale. It is looking for €600 mln for B:Hub in Berlin (pictured).
We also track the other new financings and assets coming to the market, new fund raisings, and deals for which pricing has been disclosed.
