Millions dished out to Hibernia executives
Senior executives at Hibernia Reit have just received millions of euro worth of shares in the property investment group following the confirmation of a deal to internalise the management of the business.
Filings with the stock exchange show that Hibernia Reit chief executive Kevin Nowlan received €4.8m worth of shares in the company this week as part of the process.
Senior Hibernia Reit adviser Frank Kenny received €3.2m in shares under the same scheme, while chief operations officer Frank O'Neill received shares worth €959,000. William Nowlan received €2.4m worth of shares.
Hibernia said last week that the total consideration for internalising the management function of the business would be €21.1m. Of that, €8.2m is being paid in cash and the remainder through the issue of 10.9m new shares.
Hibernia Reit announced the plan to internalise its management function earlier this year.
The company had originally entered into an agreement with a firm called WK Nowlan Reit Management to handle administration of the business. In the year to the end of last March, WK Nowlan Reit Management had received €10m in fees from Hibernia Reit. That figure comprised a €4.7m basic management fee and a performance fee of nearly €5.8m.
In May, Hibernia Reit announced plans to bring the management function in-house.
It said then move would bring benefits, including broadening the range of potential investments, locking in the management team for a longer period, simplifying the overall management structure and increasing transparency and management accountability.
Hibernia Reit floated on the stock market in December 2013, raising €365m.
Key executives injected a total of €3.5m into Hibernia under that flotation plan.
Kevin Nowlan, a former rugby player for Leinster and Ireland, previously worked for Anglo Irish Bank, then Treasury Holdings, and subsequently WK Nowlan as its managing director before moving to Nama in 2010. He rejoined the Nowlan firm in early 2013.
Hibernia has a market capitalisation of €905m. Its shares floated on the stock exchange at €1 and were at €1.33 yesterday.
Since its flotation, the company has invested more than €600m of equity in property assets.