Business

Friday 20 April 2018

Green REIT shares jump 9pc on first trading day

Pat Gunne, Green Reit Plc (left) with Minister for Finance, Michael Noonan TD, John Moran, Department of Finance and Stephen Vernon, Green Reit Plc, pictured at the Green Reit Plc launch held in the Irish Stock Exchange, Dublin.
Pat Gunne, Green Reit Plc (left) with Minister for Finance, Michael Noonan TD, John Moran, Department of Finance and Stephen Vernon, Green Reit Plc, pictured at the Green Reit Plc launch held in the Irish Stock Exchange, Dublin.
Thomas Molloy

Thomas Molloy

Shares in Ireland’s first real-estate investment trust rose on the first day of trading in Dublin today.

Shares in Green REIT, currently a cash shell after raising €310m last week in a share placement, climbed as much as 9pc in early trading. They were 8pc higher at €1.08 at 12.42pm.

The firm, Ireland's first real estate investment trust (REIT), placed 300,000 shares on the Irish stock market at €1 per share in its initial public offering.

“Essentially, Green REIT is a play on a property recovery in the Irish economy and management expertise to identify and extract value from this recovery,” said Dermot O’Leary, chief economist at Dublin-based Goodbody Stockbrokers, in a note.  “The Dublin commercial property market has attracted significant interest from international investors over the past twelve months,” he added.

Green REIT aims to increase the size of its fund by borrowing around a third of its equity and focus on buying commercial real estate in Dublin, Stephen Vernon, a non-executive director, said yesterday. Some €610m of Irish real-estate investment deals were struck in the first half of this year.

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