Benedict Real Estate Bidco Limited (Bidco), a subsidiary of one of Brookfield‘s real estate private funds, has made a cash offer worth €1.09 billion to buy Hibernia REIT, an Irish Real Estate Investment Trust.
Hibernia REIT and Bidco have reached an agreement on the terms of a cash offer by Bidco which has been unanimously recommended by the Hibernia REIT board, pursuant to which Bidco will acquire the entire issued and to be issued share capital of Hibernia REIT.
Under the terms of the acquisition, Hibernia REIT shareholders will be entitled to receive €1.634 in cash for each Hibernia REIT share, comprising €1.60 per Hibernia REIT share(offer price) and 3.4 cent dividend per Hibernia REIT share.
”The acquisition, including the dividend, values the entire issued and to be issued share capital of Hibernia REIT at approximately €1.089 billion on a fully diluted basis,” said Hibernia in an announcement.
The offer price, excluding the dividend, represents a 35.6% premium to Hibernia REIT’s closing price of €1.180 on 24 March 2022, the last business day prior to the publication of this announcement.
“We have built a strong relationship with Hibernia REIT’s management team and are excited to partner with them in the next phase of the Company’s development by combining Brookfield’s global real estate expertise with Hibernia REIT’s established operating platform and portfolio of high-quality standing and development assets in Dublin’s most strategic submarkets. We look forward to supporting Hibernia REIT as they continue to create value by capturing demand from top global tenants for modern, sustainable buildings with best-in-class amenities and wellness credentials in prime locations,” said Brad Hyler, Managing Partner and Head of European Real Estate at Brookfield.
“Despite significant progress against its strategic objectives and a track record of successfully recycling capital into value accretive opportunities, Hibernia REIT has traded at a persistent discount to its prevailing EPRA NTA per share. The Acquisition recognises the Company’s prospects and the quality of its portfolio of assets and delivers an acceleration of the value we expect to be created from completion of Hibernia REIT’s major office development projects. The Acquisition allows Hibernia REIT shareholders to realise the value of their investment in Hibernia REIT in cash at a significant premium to Hibernia REIT’s prevailing share price and a premium to its EPRA NTA per share at 31 December 2021, when taking account of the Directors’ current estimates of expected latent tax and debt breakage costs for Bidco,” said Danny Kitchen, Chair of Hibernia REIT.
Bidco is a newly incorporated Irish company established for the purpose of undertaking the acquisition. Bidco is a subsidiary of one of Brookfield’s real estate private funds.
Brookfield is one of the world’s largest owners and operators of real estate with over $250 billion of real estate assets globally, and an office portfolio of approximately 200 million square feet worldwide. In Europe, Brookfield’s real estate business comprises approximately $50 billion of assets across office, student housing, logistics, life sciences, residential, retail and hospitality.
Hibernia REIT is an Irish Real Estate Investment Trust (REIT), listed on Euronext Dublin and the London Stock Exchange. Hibernia REIT owns and develops property and specialises in Dublin city centre offices.