Ireland’s Green REIT puts itself up for sale

Irealnd real estate investment trust

Dublin-listed real estate investment trust, Green REIT, is putting itself up for sale
 in a bid to “maximise value for shareholders”.

The company said it had undertaken a “comprehensive and carefully considered review of the strategic options”, which has led it to sell the company or its portfolio of assets.

Here is Green REIT’s announcement;

”The Board of Green REIT plc (“Green REIT” or the “Company”) announces that it has undertaken a comprehensive and carefully considered review of the strategic options open to the Company to maximise value for its shareholders. As a consequence of this review, the Board has taken a decision to initiate a process for the sale of the Company or its portfolio of assets.

”The Board has a strong conviction in the value of the Company’s assets, its management and its business plan, as well as in the Irish commercial real estate sector. However, despite the strong financial and operational performance of the Company, the structural discount in the Company’s share price relative to its net asset value per share persists and this is at the core of the Board’s decision to focus on the sale of the Company or its portfolio of assets. The sale process will commence immediately.Commenting on the decision Green REIT’s Chairman Gary Kennedy said:

“Green REIT owns one of the rare prime office and logistics portfolios of scale in Ireland, underpinned by strong tenants and a supportive market and macro environment. Notwithstanding this, the Company’s share price has been subject to a material and persistent structural discount to its net asset value per share for over three years now. Our primary responsibility as a Board is to deliver shareholder value. Given this imperative and following detailed analysis and due consideration, we have decided to focus on the sale of the Company or its portfolio of assets. It is the Board’s view that this is demonstrably in the best interests of our shareholders.”

Key investment highlights

·      Scale opportunity in a fast-growth economy within the European Union.

·     Ireland is a pro-business environment with a focus on the US technology and financial sectors, attracting young highly-educated talent to accommodate the high-growth characteristics of the Irish economy.

·      €1.48 billion1 portfolio of prime office and logistics assets (95% Dublin; 88% office), secured with blue-chip tenants delivering €75.5 million of annualised contracted rent, with visibility to grow this to €83 million within 18 to 24 months.

·     Place making and asset management opportunities across two principal office campus assets that account for more than 50% of the overall portfolio by valuation and rent roll.

·     Significant development opportunity within the existing portfolio, comprising a 310 acre prime logistics park (56 acres developed to date), located adjacent to Dublin’s airport, the main motorway network and close to Ireland’s principal port, and 400,000 square feet (37,200 square metres) of prime office development within an existing office campus in Dublin.

·   Opportunity to take on highly regarded team (or part thereof) employed by the Company’s external investment manager (the “Manager”). Alternatively, if so desired by any successful interested party, the Manager has informed the Company that it is also willing to explore the termination of its existing investment management agreement with the Company. 

”Stephen Vernon and Pat Gunne, the co-founders of the Manager, have informed the Company that neither they nor the Manager will make an offer to acquire the Company nor will they otherwise directly or indirectly participate in any third party offer to acquire the Company. This is a statement to which Rule 2.8 of the Irish Takeover Rules applies. Mr. Vernon, Mr. Gunne and the Manager have each consented to the inclusion of this statement in this announcement.

”The Board has appointed J.P. Morgan Cazenove as Lead Financial Adviser to assist with its review of any proposals made for the Company or its portfolio of assets, and parties with a potential interest in making a proposal should contact J.P. Morgan Cazenove, whose details are set out below. CBRE has been appointed as Property Adviser to the Company, Davy has been appointed as Joint Financial Adviser and Corporate Broker, and Arthur Cox has been appointed as the Company’s legal adviser.

For more visit: Green REIT

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