Luxembourg, December 9, 2025 – Grand City Properties S.A. (GCP) today announced the successful completion of a significant refinancing transaction involving its perpetual notes. The Luxembourg-based real estate firm has refinanced approximately €600 million, a move anticipated to yield annual coupon savings of around €7 million.
The transaction, which concluded on Tuesday, December 9, 2025, involved a tender offer for existing perpetual notes. This initiative is expected to be accretive to the company's Funds From Operations (FFO) and bolster its credit metrics, as assessed under S&P methodology.
Strategic Refinancing Details
The refinancing operation saw Grand City Properties S.A. replace approximately €500 million of higher-coupon perpetual notes. Concurrently, the company repurchased about €100 million of its €700 million 1.5% perpetual notes, acting proactively ahead of their first call date in 2026.
This tender offer followed the successful issuance of €600 million in new perpetual notes on December 1, 2025. These newly issued notes carry a coupon rate of 4.75%. The strategic timing of these actions underscores GCP's commitment to optimizing its debt profile and enhancing financial flexibility.
Impact on Financial Outlook
The projected annual coupon savings of approximately €7 million are a key outcome of this refinancing. This reduction in interest expenses is expected to positively impact the company's profitability and financial stability. The transaction's positive effect on FFO and credit metrics aligns with GCP's broader financial strategy.
Company Profile
Grand City Properties S.A. specializes in residential real estate, focusing on value-add opportunities within densely populated areas, primarily in Germany and London. The company's shares are listed on the Prime Standard segment of the Frankfurt Stock Exchange. Through repositioning and intensive tenant management, GCP aims to improve its properties, thereby increasing occupancy and rental levels.
5 Comments
Muchacho
Positive news for investors. Shows strong strategic planning.
Comandante
Streamlining debt is key. Solid decision by the board.
Bella Ciao
Optimizing debt and improving FFO is certainly a good strategic move for GCP. However, the reliance on perpetual notes, even at a lower coupon, introduces a different layer of financial complexity that needs careful oversight.
Mariposa
Doesn't address the fundamental market challenges in real estate.
Coccinella
Smart move by GCP. Lowering costs is always a win.