One of Hibernia Reit’s biggest shareholders sold its entire 4.55pc stake in the takeover target at a price just below the offer currently on the table from asset manager Brookfield.
Toronto-based Hazelview Investments sold its stake in the Irish property business at €1.612 a share on the market last Friday, a week after Canada’s Brookfield launched its €1bn takeover offer.
The Brookfield offer is made up of €1.60 plus a 3.4pc dividend per share. Hibernia’s board agreed in March to recommend the cash offer, which represents a 35.6pc premium on the share closing price on March 24 but a 5.7pc discount on Hibernia’s total assets.
The acquisition is conditional on approval by Hibernia shareholders.
Brookfield is one of the world’s largest owners and operators of real estate with over $250bn of real estate assets globally.
The Canadian asset manager is headed by CEO Bruce Flatt and is based in Toronto.
Hibernia specialises in city centre office developments, returning to growth last year as ‘work from home’ restrictions eased and it closed a number of deals.
In December, Hibernia pre-leased 288,500 sqft in its Harcourt Square office development to KPMG Ireland in a 20-year deal that will see KPMG pay initial annual rent of €17m from the start of the lease in 2026.
It also completed the sale of its Dockland Central properties to Commerz Real for €152.3m.
Hibernia chairman Danny Kitchen said the acquisition came as the Dublin and London-listed firm continued to trade “at a persistent discount” per share despite “a track record of successfully recycling capital into value accretive opportunities”.
The deal leaves just one out of the four Reits established here under post-financial crisis tax and stock market rules standing, the country’s biggest private residential landlord Ires Reit.