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December 6, 2013 4:56 pm
Ireland’s second real estate investment trust has launched, raising €365m in its initial public offering.
Hibernia Reit is larger than Green Reit, Ireland’s first such trust which raised €310m when it launched in July.
It aims to focus on office properties in the Dublin area, although it will consider other opportunities as well.
The Reit structure is new to Ireland, having been introduced by the government this year as part of a programme of property measures designed to stabilise the market and attract foreign investors back to the country.
Irish property prices have bottomed out and as a result, investors anticipate substantial opportunities to acquire assets in the coming months as banks and institutions deleverage.
The Reits enable private companies to buy property from banks and Ireland’s National Asset Management Agency (Nama) – the “bad bank” set up to clear toxic property loans from banks’ balance sheets – on tax-efficient terms.
Construction activity is rising at the fastest pace since the start of 2006, figures released in October showed.
Hibernia investment manager chief executive Kevin Nowlan, said: “The level of funds we have raised will allow Hibernia to create a property portfolio of scale and quality.”
Credit Suisse and Goodbody acted as joint bookrunners.
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