The UK and Irish arm of international property firm Grosvenor has raised £125 mln (EUR 149 mln) through the issue of long-term unsecured loan notes in order to diversify its funding sources and help finance forthcoming investment in its London estate.

The issue was priced on Friday 11 February for a yield of 5.69%. Closing is expected at the end of April.

Grosvenor Limited placed the issue in the US private placement market to a select group of investors based both in London and the US.

Peter Vernon, CEO of Grosvenor Britain & Ireland, said: 'We felt this was a good moment to raise longer term finance at historically competitive rates, and in maturities that would extend the company's debt maturity profile. The funds will be used to continue our programme of investment and development in the London estate. We are delighted at the appetite investors have shown for this issue.'

The financing, which was fully denominated in sterling, was heavily oversubscribed. The issue consists of £95 mln of notes maturing in 2031 with a coupon of 5.57% and £30 mln maturing in 2041 with a coupon of 6.05%.

RBS acted as sole book-runner on the deal, with HSBC acting as adviser.