Bruntwood hits £50m bond target
PROPERTY group Bruntwood has hit a £50m fundraising target with its retail bond issue.
In a brief statement the Manchester-based group said the, “nominal amount of the bonds to be issued will be for no less than £50m”.
The company had set a target of £50m-£70m.
The bond is offering a fixed rate of 6% until 2020 on minimum investments of £2,000. Bruntwood, which owns 110 properties valued at £891m, will secure the bonds against seven properties: Alberton House, Manchester; Exchange Court, Liverpool; Lancastrian Office Centre, Old Trafford; West Gate, Leeds; South Central, Manchester; Wilderspool Business Park, Warrington; and Landmark House, Cheadle Hulme.
The bond issue concludes a year in which Bruntwood has sought to refinance against a gloomy economic backdrop and negative sentiment towards the property sector.
In January it secured a £120m loan with Legal & General to refinance part of the £432.5m of Commercial Mortgage Backed Securities (CMBS) which were initially arranged through RBS in 2007. In February it secured an extension on £229m of the CMBS. A further £75m will be refinanced by the bond issue and an extension to a £225m loan facility with RBS, HSBC and Barclays, which is ongoing.
