Green REIT ‘plans to tap market’

Green REIT is close to tapping the market for about €300m in funding to finance future investments, the Irish Examiner has learned.

The listed vehicle has just completed the acquisition of the €311.5m Central Park portfolio from Nama in a 50:50 venture with Pimco.

Green REIT was the first company to take advantage of the REIT [real estate investment trust] legislation introduced in the 2013 budget, by Finance MinisterMichael Noonan. Its focus is on prime commercial assets in Dublin.

The company declined to comment. However, sources say Green REIT is very close to finalising plans for another round of funding, possibly as early as today.

REITs enable investors to speculate on the property market without buying the underlying property assets.

Another REIT that listed on the Irish market last year, Hibernia REIT, announced it has acquired the Gateway site, an industrial facility in Newlands Cross, Naas Rd, Dublin 22.

The Gateway site was acquired for €10m from receivers acting on behalf of Bank of Scotland (Ireland), having being openly marketed with a guide of €8.25m.

This is Hibernia’s third acquisition since listing in December 2013, noted Davy stockbrokers.

The property comprises three buildings: Terminal 1 which totals 7,041sq m (75,788sq ft); Terminal 2 which totals 7,444 sq m (80,167 sq ft); and Terminal 3 which totals 2,048 sq m (22,045 sq ft).

The Gateway site is 46% occupied by JMC Van Trans and Technetix. The property currently produces €517,000 in income which equates to 5.12% gross yield and 4.94% net yield.

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