SEGRO this week became the first UK property company in three years to launch an unsecured corporate bond.
The £300m bond issue, which the industrial REIT plans to use for general corporate purposes, is a further sign of a thaw incapital markets, which is set to help property companiesto raise debt finance.
In July, Land Securities issued a £360m bond secured against the income from its Queen Anne’s Gate office building in Victoria, SW1.
SEGRO’s group finance director, David Sleath, said: “We are pleased with the strong demand for this 12-year bond, which is the first unsecured sterling bond market issue by a UK real estate company since 2006.
“This transaction further strengthens the group’s financial position following a number of other financing initiatives undertaken earlier this year.”
SEGRO said the bonds wouldbe rated A- by Fitch and would mature on 23 November 2021.
The joint bookrunners and lead managers to the issue are Barclays Capital and HSBC. Commerzbank and Lloyds have been appointed as co-lead managers.
