Monday 19 March 2018

Investors hungry for latest €200m property IPO

aerial view...HN
Peter Flanagan

Peter Flanagan

Shares in the latest property investor to list on the Irish Stock Exchange rose on its first day of trading, as investors' appetites for property here showed no sign of abating.

Irish Residential Properties REIT rose 4pc from its €1 list price on its debut on the Dublin market.

The REIT – the third such investment vehicle to list in Ireland in the last year – raised €200m for property investment through its flotation. The firm attracted a host of international players, including Franklin Templeton and Irish Life Assurance. Schroders Real Estate and Schroder Investment were described as "significant investors" in the REIT.

The REIT, which was set up by the Canadian giant CAP REIT, plans to buy residential properties across the country.

The REIT has an initial portfolio of 338 residential units across four properties in the greater Dublin area.

In a statement, the firm said it plans to acquire, hold and manage investments focused on multi-unit residential real estate in Ireland and Northern Ireland and/or ancillary, strategically-located commercial property, for third party rental.

IRES REIT is the third real estate investment trust set up in Ireland in less than a year, but unlike Green REIT and Hibernia REIT, IRES plans to focus mainly on residential property.

Company chief executive David Ehrlich said: "Our successful fund-raising demonstrates the Irish market is open for business.

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