Green Property: Owner of Blanchardstown centre launches €200m REIT
GREEN Property - the owner of Dublin’s Blanchardstown shopping centre – is launching a €200m real estate investment trust (REIT) on the stock exchange as it targets property investments in Dublin.
Green REIT is the first such investment vehicle to be launched on the Irish stock exchange following legislation introduced under the Finance Act earlier this year. REITs are commonly used in other jurisdictions as tax-advantageous property investment vehicles.
Green Property chairman Stephen Vernon and the company’s managing director Pat Gunne will invest a total of €10m in the new REIT and will commit to retaining their holding in it for at least three years.
While the REIT’s primary focus will be on commercial assets in the capital, it may also consider investing in cities such as Cork, Galway and Limerick.
“By establishing the company during the current cyclical weakness in the Irish real estate market, the board believes the company will give shareholders the opportunity to take advantage of the re-pricing of assets that has occurred within the company's target categories of investment properties,” it said.
The company will distribute 85pc of its property income to shareholders each year in accordance with the requirements of the Irish REIT legislation.
Gary Kennedy, the chairman of Green REIT, said the new vehicle represented a “significant commitment” to Ireland.
Minister for Finance Michael Noonan this morning welcomed the launch of Green REIT.