Mori raises 13b yen in 10-year bonds

[TOKYO] Mori Building Co has sold its longest bond ever as Japan's biggest closely-held developer plans one trillion yen (S$12.2 billion) of projects in the decade that will include the 2020 Tokyo Olympic Games.

The company, whose Roppongi Hills complex houses Goldman Sachs Group Inc and Apple Inc, raised 13 billion yen in 10-year bonds last Friday. The notes offered three times the average yield premium for Japanese peers at 34 basis points over government debt. Global property companies pay 130 basis points, Bank of America Merrill Lynch indexes show. (A basis point is 0.01 percentage point.)

Mori is boosting investments as occupancy rates for offices in Tokyo are at their highest in five years and the Olympics bid committee forecast an economic windfall of three trillion yen for the nation. The company, whose Toranomon Hills became the capital's second-tallest building in June, plans to develop about 10 projects over the next decade in the city with partners, president Shingo Tsuji said in June.