File picture: James White

CAPE TOWN – NEPI Rockcastle, which owns properties in central and eastern Europe, on Wednesday undertook a €500 million (R8.4 billion) bookbuild for an unsecured bond issue, the company said in a statement.

The funds would be used for general corporate purposes, including acquisitions, property developments, refinancing and working capital management. The property investment and development group has a property portfolio valued at €6.1bn.

The bonds would mature in October 2026. The group had undertaken another €500 million bond issue in May this year.

In its results for the six months to end-June 2019, loan to value was conservative at 35 percent. It forecast an increase in distributable income of about 6 percent over that of 2018.

Its property development pipeline, including redevelopments and extensions, exceeded €1.2bn, of which €240m was spent by June 2019. Of the remaining investments, only 18 percent have been committed, which the group said had providied flexibility regarding prioritisation of the projects.

BUSINESS REPORT