British Land issues £350m convertible bond to fund One Sheldon Square Paddington and Surrey Quays acquisitions

Lynsey Barber
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Cheesegrater developer British Land is raising money (Source: Getty)

British Land, one of the UK's biggest developers, has launched a £350m convertible bond.

The senior, unsecured convertible bonds, due in 2020, will be used to fund its acquisition of two central London properties and future spending.

The developer splashed £210m on increasing its ownership of One Sheldon Square in Paddington in April, and bought Surrey Quays leisure Park near Canary Wharf for £135m in March.

"More generally, the company believes that the offering contributes to the company's existing strong financial position while also taking advantage of the current favourable market conditions to diversify its medium-term sources of finance and keep its cost of debt low," British Land said.

The initial conversion price is expected to be set at a premium of between 20 per cent and 27.5 per cent above the volume-weighted average price of British Land shares between launch and pricing.

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