Core set for IPO in Dublin and London
Core Industrial Reit has confirmed its intention to proceed with a flotation on the junior London and Dublin stock markets.
In a statement released to the London Stock Exchange yesterday, the company said it expects to raise up to €225m in an initial public offering of its shares on the AIM (Alternative Investment Market) and ESM (Enterprise Securities Market) next month.
Core, which is backed by the US hedge fund York Capital, is targeting a market capitalisation of €250m upon admission of its shares to the stock market.
While Core will be the fourth Irish real estate investment trust after Green Reit, Hibernia Reit and Ires Reit, it will be the first such vehicle to focus solely on investing in the Irish industrial property sector.
Of the three existing Reits, Green Reit is the only one to have invested in the industrial sector outside of its involvement in the Dublin office market. Hibernia Reit and Ires Reit specialise in offices and residential accommodation respectively.
Core already has a portfolio of 106 industrial assets and approximately 167 acres of land (including 36.7 acres of zoned and serviced industrial land) which it valued at €82.9m on November 30 last. Located primarily in Dublin and in the Greater Dublin Area, the properties were acquired by York Capital on the advice of Core's Daniel Donovan and William Redmond following the crash. The company said it had already identified a "pipeline of acquisition and development opportunities" with an estimated value of over €250m, which it said "are under active consideration" by its management team.
Core's executive directors Mr Donovan and Mr Redmond will be joined on the board by a number of non-executive directors.
Andrew Craig, a former audit partner with PriceWaterhouseCoopers, will serve as non-executive chairman, while Paul Lynch, formerly chief financial officer of Irish fuel retailer Applegreen plc, Michael Moriarty, formerly head of asset recovery at Nama, and Diego Arroyo Ornelas, a senior vice-president at York Capital, will also serve as non-executive directors.