Nowlan firm earns €10m in fees for managing Hibernia REIT
The company that manages Hibernia REIT on an outsourced basis received over €10m in fees from the property investor in the year ending March 31, 2015.
The company made a pre-tax profit of just under €7m, recently filed accounts show.
The arrangement sees former Irish rugby international Kevin Nowlan act as chief executive of Hibernia REIT. The former Leinster full back worked at Nama as a portfolio manager for three years and held a similar role in Johnny Ronan's Treasury Holdings for four years. He also worked at Anglo Irish Bank.
His company - WK Nowlan REIT Management - says that its principal activity is to manage Hibernia on an exclusive basis.
The fees were made up of a basic management fee of €4.7m, and a performance fee of almost €5.8m. The latter was calculated on the basis of shareholder returns.
In May, Hibernia REIT announced that it wanted to buy Nowlan's company and bring the management team in-house.
It said it expected that this would, among other things, help secure the management team for the longer term and broaden the base of potential investors in the company.
The proposal will need approval from Hibernia shareholders at an EGM. A circular to shareholders is expected to be issued shortly, after which it is expected to take up to six weeks to complete the process.
The company recently unveiled its plans for the iconic Windmill Lane site in Dublin - once home to a recording studio used by the likes of U2 and New Order.
It aims to develop over 120,000 sqft of offices, around 7,000 sqft of retail, and 15 residential units at the site.
Hibernia has formed a joint venture with an affiliate of American investment firm Starwood Capital to develop the project.
Sunday Indo Business