3rd Jul

Bruntwood Investments plc launch 6% retail bond offer

Bruntwood Investments plc, the family owned property group have issued their first retail bond offering investors a 6% return. It will be secured against the Manchester company's £891m property portfolio and will be due in 2020.  

Bruntwood are looking to raise £70m to help diversify it's funding base.

The Bonds will be issued on 24 July 2013. Fixed interest at the rate of 6% per annum, will be payable semi-annually in arrears on 24 July and 24 January of each year until 24 July 2020. The first coupon payment will be on 24 January 2014

The Bonds have a minimum initial subscription amount of £2,000 and are available in multiples of £100 thereafter

The Group was founded in 1976 and is one of the United Kingdom’s largest privately owned commercial property groups. Their main activity is the customer service led provision of conventional office space with ancillary retail premises, storage and car parking facilities to a range of customers including the public and private sectors.

Bruntwood owns approximately 6.2 million square feet of space within 110 properties which are utilised by over 2,000 business customers

Investec Bank is acting as sole manager on the issue, and the authorised distributors for the bonds are Barclays Stockbrokers, Brown Shipley, Interactive Investor Trading, Killik & Co, Redmayne Bentley and Selftrade.

Commenting on the launch, 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”.

Full details can be obtained here:-

/Images/PDF/Bruntwood Prospectus.pdf

/Images/PDF/Bruntwood Retail Bonds Online Information Booklet.pdf

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