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British Land closes $480m US bond

British Land has closed a $480 million (£300m) US private placement bond issue, the largest US private placement transaction by a UK Real Estate Investment Trust (REIT).

Together with the £560 million syndicated bank financing agreed earlier in the year, it means the developer behind the City of London’s Cheesegrater skyscraper, more formally known as the Leadenhall Building, has raised £860m of funding since May 2011.

The bond, originally launched at $200 million, was three times oversubscribed. British Land then opted to increase the issue to $480m.

Lucinda Bell, finance director at British Land, said: “This financing, together with the £560 million syndicated bank facility earlier in the year, builds on our strong liquidity position and demonstrates our ability to access funding on attractive terms from a range of sources. 

“We are delighted by the level of demand for the placement, reflecting our scale, high quality portfolio and strong balance sheet.”

The developer said it takes the company’s weighted average debt maturity and interest rate, including share of joint ventures and fund debt, to 9.7 years and 4.8 per cent. The range of maturities is between seven and 15 years, and there are 12 investors.  

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