A new property investment trust has indicated its intention to float on the Irish Stock Exchange and raise proceeds of up to €350m. Hibernia REIT plans to follow Green REIT, the first trust to float since last year’s Finance Act paved the way for the establishment of the tax-efficient publicly quoted property investment funds.
The company said it aims to assemble a portfolio of attractively located, institutional quality, primarily income-producing properties, mainly in the greater Dublin area. It will also seek admission to the London Stock Exchange.
A REIT is a company that owns and manages property on behalf of shareholders. It can contain commercial and/or residential property but excludes the letting of owner-occupied buildings. REITs provide a way for investors to access the risks and rewards of holding property assets without having to buy property directly. Hibernia’s portfolio will be managed by Kevin Nowlan, a former senior portfolio manager with NAMA according to RTE News.
“The establishment of Hibernia REIT is a significant landmark for the Irish property sector,” comented the company’s chairman Daniel Kitchen. “We are fortunate to have in place an experienced investment management team with a track record of value creation at a time when there is an abundance of opportunities. It is a team with the detailed market knowledge required to secure the right properties and, we believe, to deliver sustainable and real returns for our shareholders,” he added. Source: RTE News.