Property loan to pave the way for Irish investors
REO has assets of over €850m and is listed on the London, Irish and Channel Islands stock exchanges.
This deal is a first for an Irish property company and paves the way for other property investors, including Irish banks, to follow a similar path in the future.
Difficulties in complying with Irish examinership regulations as well as a number of tax points prevented such cash-raising until now, said Treasury Holdings financial director Guy Leech.
When sanctioned, the loan will replace more expensive borrowings, driving down costs and freeing up cash for other investments.
Borrowings will be secured against 16 retail and office properties, including the Stillorgan Shopping Centre and offices occupied by Bank of Ireland and KPMG. Treasury Holdings is REO’s Irish property investment adviser and owns 57% of the group.
REO chairman Ray Horney described the deal as an “innovative transaction” that will save €2.8m, while freeing up cash.
“The deal will allow REO to pursue further expansion opportunities in the real estate markets in Ireland and elsewhere.”
Eurohypo head of securitisation Caroline Philips, said: “REO has a portfolio of high-quality properties ideally suited for funding in the capital markets.”
“REO and Treasury have once again shown the way with Ireland’s first property securitisation,” she said.
Breaking the mould in the Irish market in this way has opened up the Irish market to securitisation deals because the sticking points preventing such cash raising have been dealt with to everyone’s satisfaction.
Real Estate Opportunities owns a wide portfolio of properties in Ireland. The company’s investment and development portfolio includes land, properties and developments in all major sectors of the property market, including office, retail, residential, and industrial.
Real Estate Opportunities Ltd is a closed-end investment company formed in 2001 and incorporated in Jersey.
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