Grosvenor has raised £90m through the international bond market to invest in the development of its central London estate.
The Duke of Westminster’s property company issued unsecured long-term notes, priced to yield 3.91%.
The sterling-denominated notes consist of two tranches: £60m of 10-year notes maturing in 2022 with a coupon of 3.38%, and £30m of 25-year notes maturing in 2037 with a coupon of 4.97%.
It is the second time Grosvenor has tapped the bond market in recent months following the issuance of £125m of bonds at the start of last year.
Grosvenor owns and manages a £5.8bn estate and is building a number of high-end properties in Mayfair and Belgravia, including a mixed-use scheme on a 1.5-acre site at Hyde Park Corner developed in partnership with Derwent London.
Other blue-chip UK players, including Great Portland Estates, have looked to the private placement market to raise money as demand from investors for access to stable UK property companies remains strong.
It also gives these players more diversification in the length and source of their debt.
RBS acted as sole bookrunner on the deal.
bridget.oconnell@estatesgazette.com
