Member Article

Bruntwood launch 6% bonds

Property group Bruntwood, which is based in Manchester, has launched an offer of 6% bonds on the London Stock Exchange, which is expected to raised £70m for the firm.

The firm owns and manages 110 office buildings through its subsidiaries, which have a combined value of £891m and are leased to over 2000 businesses in Manchester, Birmingham, Leeds and Liverpool.

The bonds launched on Wednesday will have a guarantee from Bruntwood and will be anchored by a portfolio of real estate and the firm’s other assets.

Due to be issued on the 24th July 2013, the bonds will be available to retail investors and for general corporate purposes, at a fixed interest rate of 6% a year.

Bruntwood said the offer period has now opened and will close on 17th July 2012, with a minimum subscription amount of £2,000, or in multiples of £100 thereafter.

Chris Oglesby, Chief Executive of Bruntwood, said: “We are very pleased to announce the launch of our first retail bond.

“This will enable us to diversify our funding base without increasing our leverage. Bruntwood has operated in the regional property sector for 37 years and looks forward to joining the growing number of companies in the retail bond market trading on the LSE ORB platform.”

This was posted in Bdaily's Members' News section by Miranda Dobson .