First Berlin Equity Research has published a research update on Grand City Properties S.A. (ISIN: LU0775917882). Analyst Ellis Acklin reiterated his BUY rating and maintained his EUR 14.80 price target.

Abstract
Grand City Properties announced the completion of a successful perpetual note refinancing with the placement of €600m in new notes bearing a 5.25% coupon. The company launched a simultaneous tender offer for its outstanding €603m perpetual notes callable in 2026. The new notes are intended to finance the concurrent tender offer. Upon completion of the tender, the residential landlord will have successfully refinanced its full perpetual notes portfolio. The next perpetual note reset events are now in 2031. We reckon the deal: (1) closes out a difficult refinancing cycle on sensible terms; (2) removes a near-term capital structure overhang; and (3) leaves GCP with improved funding visibility and materially more breathing room until 2031. We maintain our Buy rating and €14.8 TP (upside: 50%).