Weekly data sheet: The debt capital markets swing open - at least for logistics real estate

Leading logistics companies have raised a cool €2 billion on the Euro bond market in the last three weeks.

Following Logicor's €650 mln of euro notes successfully sold in late January, both P3 Group and CTP launched issues this week, of €600 mln and €750 mln respectively. All three were returning to the public debt market after two years when the markets had effectively been closed.

P3 said very strong demand saw an order book top €3.5 bn at its peak and a final book over 5 times oversubscribed. The credit spread was 207 bps and the fixed coupon 4.625% for 6-year money, with 150 investors receiving notes.

Ben Helsing, P3 group treasurer and head of debt investor relations, said: 'It has been interesting ... to hear that logistics continues to be one of the sub-segments within real estate favoured by bond investors due to fundamentally strong demand trends.'

 CTP's issue - which was also more than x5 oversubscribed - had a similar coupon, of 4.750%, for the same tenor, while Logicor's notes have a 4.625% fixed coupon for a shorter tenor of 4.5 years.

All three issues will be used to finance eligible green assets, underlining investors' appetite for green real estate bonds.

In the private debt markets, German bank Aareal confirmed that it had 'played a crucial role' in Starwood's circa €800 mln acquisition of 10 Radisson Blue hotels in London last month, providing debt for eight of the properties.

Logistics figured prominently again this week in deals closing, with two separate portfolio transactions. Swiss Life and its specialist logistics subsidiary Beos, sold a seed portfolio of five German warehouses to LaSalle IM in a deal valuing the properties at €320 mln - Swiss Life is keeping a small stake.

And WP Carey closed a €280 mln pan-European sale and leaseback on 16 industrial and warehouse assets.

Newly up for sale are three prime retail-led buildings in London's West End, and student housing in the UK and Ireland. The UK student portfolio is five properties in strong university cities developed by Urbanite Living.

We also track the managers raising new funds, with Edmond de Rothschild REIM targeting a larger, €500 mln equity pot for its next debt fund.

Click here to see all this week’s data.

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