Aroundtown issues €750m bond at 3.5%
On 6 May 2025, Aroundtown, the German commercial real estate company, successfully issued a five-year senior unsecured bond, raising €750 million. The new Series 41 bond carries a coupon of 3.5%, significantly below the 4.8% rate of its previous issuance in July 2024. The deal attracted strong demand and was three times oversubscribed. The bond is expected to be rated BBB by S&P, the ratings agency.
At the same time, the company launched a tender offer to repurchase a range of outstanding bonds with a combined nominal value of more than €2 billion. The buyback offer focuses on securities with shorter maturities—within the next 18 months—and higher coupon rates. It began on 6 May and will close on 13 May 2025.
Instruments targeted by the buyback include a €800 million 0.625% note due July 2025, a €500 million 1.875% note due January 2026, and several other euro-, dollar-, and sterling-denominated notes maturing as far out as 2031. These include a $600 million 5.375% note due March 2029 and a £400 million 3.625% note due April 2031.
Proceeds from the new bond issuance and existing liquidity will be used to repurchase the targeted bonds and repay short-term obligations. Aroundtown has already redeemed approximately €660 million in bonds this year.
The refinancing and tender offer are part of the company’s broader effort to optimise its debt structure, cut financing costs, and strengthen its balance sheet.
Aroundtown SA is a Luxembourg-registered public limited company and the largest publicly listed commercial real estate company in Germany. It is focused on income-generating properties with value-add potential in central locations across major European cities, particularly in Germany, the Netherlands, and London.
