Grosvenor property uk to raise £150m

Grosvenor Property UK has agreed terms to raise the funds in a private placement

The property giant owned by the Duke of Westminster, whose assets include Liverpool ONE, is to raise £150m.

Grosvenor Property UK has agreed terms to raise the funds in a private placement. The new 10-year 3.23% senior notes were placed with two US institutions.

The investors, both existing partners to the business, have increased their holdings from a maturing £60m private placement.

Grosvenor Property UK said the proceeds from the placement will be used for ‘general corporate purposes’ including ‘ensuring the success of London’s West End via investment and development activity supporting the ongoing adaptation and improvement of Grosvenor’s London holdings’.

It added that the funds will also be put towards ‘continued diversification via the part ownership and successful management of Liverpool ONE and increasing allocation of capital to residential and office opportunities across England’ as well as the ‘delivery of GPUK’s environmental and social impact commitments’.

NatWest acted as placement agent on the new issue.

Roger Blundell, Grosvenor Property UK's chief financial officer, said: The support we received from two existing investors for this long term, well-priced private placement is a huge endorsement of the strategy we’re implementing.

And with a KPI linkage mechanism in place, our financing strategy is now further aligned to our stretching sustainability commitments, he said.

The placement is the latest in a series of steps to ensure the business is well capitalised to enable us to drive forward our commercial, environmental and social impact ambitions. This also provides us with the flexibility to be opportunistic in our approach to changing market conditions, he said.

Rob Busby, head of private placements at NatWest, added: We are very proud to have again supported Grosvenor in accessing the private placement market at attractive fixed rates.

The inclusion of KPI metrics in the transaction helps to grow the sustainable finance aspect of the private placement market, where year-to-date volumes have already surpassed 2021 levels, he said.

The detailed terms of the placement are not disclosed.

Grosvenor said a partial recovery in economic conditions and loosening of pandemic restrictions pushed its property revenues higher.

The company, which also has investments in food and agriculture tech, reported a £437.5m pre-tax profit in 2021 after tumbling to a £322.8m loss in the previous year.