Nov. 4 (Bloomberg) -- CA Immobilien Anlagen AG sold 135 million euros ($200 million) of convertible bonds to fund development projects.

The five-year notes will pay a coupon of 4.125 percent, the Vienna-based real estate company said in a statement. The notes can be handed over for stock when shares rise to 11.58 euros, which represents a conversion premium of 27.5 percent above the company’s weighted average price of 9.08 euros during the placement of the deal.

The notes can be called by CA Immo after three years should the share price rise more than 30 percent over the conversion price, according to the statement.

“With the proceeds of the offering CA Immo intends to enhance its financial flexibility in order to pursue investment opportunities in the current market environment and to fund future development projects,” the company said in the statement.

CA Immo CAI fell 34 cents, or 3.6 percent, to 9.06 euros in Vienna, its lowest close in more than a month.

The sale managers Deutsche Bank AG and UniCredit SpA have the option to buy a further 15 million euros of the securities, according to the statement.

To contact the reporters responsible for this story: Zoe Schneeweiss in Vienna at zschneeweiss@bloomberg.net; Esteban Duarte in Madrid at eduarterubia@bloomberg.net

Last Updated: November 4, 2009 11:44 EST