Thursday 14 November 2019

Capreit set to raise €200m in property play float

Capreit bought properties in a number of areas of Dublin, including Smithfield
Capreit bought properties in a number of areas of Dublin, including Smithfield
Pat McCann, head of Dalata

Louise McBride and Nick Webb

A CANADIAN real estate company is aiming to raise around €200m by floating on the Irish stock market shortly.

The company, Capreit, is an investment trust with more than 38,000 apartments and townhouses across Canada and Ireland.

Capreit is expected to raise the €200m from a small number of private investors – as well as from its debut on the ISE. It will become the third real estate investment trust to float on the Irish market in about nine months. Last December, Hibernia REIT raised €365m when it launched on the ISE while Green REIT raised more than €300m last July.

Capreit snapped up four apartment developments in Dublin for more than €40m last summer. Many of the apartments are based in Smithfield, Tallaght, Sandyford and Inchicore.

At the time, Capreit's president and CEO, Thomas Swartz, suggested the company could buy more property in Dublin to tap further into the capital's strong rental market. A shortage of supply has pushed up apartment rents in areas close to the city.

Mr Swartz could not be reached for comment last week.

Despite the exodus of Irish companies, such as Greencore and Grafton Group, from the ISE over the last few years, a stack of flotations in recent months has added momentum to the Irish market.

The Dalata Hotel Group, which was founded by hotelier Pat McCann, became the latest to join the ISE earlier this month. The group's portfolio includes the 13 Maldron Hotels as well as other well-known Irish hotels.

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