British Land has generated $480 mln (EUR 341 mln) from what the company claims was the largest private bond placement in the US by a UK Real Estate Investment Trust (UK REIT).

The placement, originally targeting $200 mln, was three times oversubscribed, prompting British Land to increase the issue to $480 mln. The range of maturities is between seven and 15 years, and there are 12 investors.

Together with the £560 mln syndicated bank financing agreed earlier in the year, British Land has raised £860 mln since May 2011.

The latest financing has an average life of over 11 years and was swapped to £300 mln (EUR 339 mln) at an average floating rate of 146 basis points over LIBOR. After drawing funds and repaying revolving bank facilities, the Group’s weighted average debt maturity and interest rate, including share of JV and fund debt, is 9.7 years and 4.8%, respectively.

RBS and HSBC acted as joint agents and hedge coordinators, and Lloyds provided hedge underwriting and syndication.

British Land is one of Europe’s largest REITS with total assets, owned or managed, of £15.2 bn at end-June 2011. The British Land share is £9.9 bn.