Friday 6 December 2019

Green REIT set to raise €400m in fresh funding

Stephen Vernon, Non-executive Director of Green REIT. Photo: Tony Gavin
Stephen Vernon, Non-executive Director of Green REIT. Photo: Tony Gavin
John Mulligan

John Mulligan

Property investment firm Green REIT will finalise a fresh €400m fundraising at an extraordinary general meeting tomorrow.

The company – which was Ireland's first real estate investment trust when it floated on the stockmarket last year – said it has already received acceptances for almost 72pc of the new shares it plans to place at €1.12 each, a 12pc premium to the flotation price. Its shares were trading at €1.20 yesterday.

The remaining 28pc of the shares have been allocated to investors with whom they were conditionally placed.

Green REIT, founded by executives at Green Property, raised €310m last year on its stock exchange debut.

It has already splashed out €335m in debt and equity to buy a portfolio of commercial property assets.

Among buildings it has bought is the Arena Centre in Tallaght, the EBS HQ on Burlington Road and the iconic Independent News & Media print works in Citywest.

Earlier this year it also bought a 50pc stake in Central Park in south Dublin. The scheme consists of six major office blocks with tenants including Vodafone, Tullow Oil and Merrill Lynch. Green REIT acquired it in conjunction with Pimco.

The aggregate value of transactions in the Irish commercial property market was some €1.93bn last year, compared to just €557m in 2012 and €186m in 2011. Last year, 42pc of transactions were accounted for by office, 34pc by mixed use, 16pc by industrial and 8pc by retail premises.

Prime city centre sites have remained the key focus for investors. That's been driven by expectations that rents will rise in the short to medium term.

More than 170,000 sq m of office lettings and sales were notched up in Dublin last year, 25pc more than in 2012. Office rents in the capital stabilised after falling about 56pc from their 2007 peak.

Irish Independent

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