Goodman fund lifts stake in Green Reit at €1.82 a share
The Goodman family has raised its stake in takeover target Green Reit to 2.28pc as the stock market listed property company prepares to shortlist potential buyers.
Beef baron Larry Goodman's Vevan Unlimited has been building a stake in Green Reit, as the €1.3bn listed property firm runs a sale process, but is understood not to be a bidder in its own right. The Goodman family built up a stake in Independent News & Media (INM) ahead of its sale, picking up a trading profit as the sale lifted share prices. Vevan also built up a 4.5pc stake in One51 ahead of its Canadian stock market listing.
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A stock exchange filing yesterday showed Vevan had a 2.28pc stake in Green, worth close to €29.1m, after buying shares on Friday at €1.82 each.
The €1.82 Veven paid last week means the discount between Green Reit's share price versus its €1.48bn of assets has narrowed and almost closed. Shares were trading as high as €1.86 each yesterday.
Green Reit's management put the business up for sale in April, citing the persistent gap between the valuation of its property portfolio and its share price. At the time, shares were trading at around €1.52 each. Second-round bids from four potential buyers are due by July 24, when Green's financial advisers JP Morgan and Davy are expected to move quickly to select a preferred bidder. Prolific Irish property investors Irish Life and Kennedy Wilson are understood to have progressed to the second round.
While Vevan has a track record of trading on the margins of takeovers, the Goodman family is separately a major commercial property investor, with assets including the former Bank of Ireland on Baggot Street in Dublin.