Property fund Green REIT has €320m war chest for investments

Green REIT is in advanced talks with its lenders on additional debt funding, but already has a war chest of more than €320m to invest in further opportunities.

Property fund Green REIT has €320m war chest for investments

Green — one of the new breed of property investment funds to have floated in the past year — yesterday issued its maiden set of annual results, which showed a net profit of €43.1m; earnings per share of 12.4c and net asset value of €727.8m. The company added that its property portfolio value is already 14.2% up on purchase price.

Some 90% of Green REIT’s portfolio is comprised of Dublin-based offices and combined occupancy rate amounts to the same percentage. Current annual rental income amounts to €28.5m per annum.

Green raised net proceeds of €685m from its IPO last summer and a secondary offering in May of this year. By the end of last June, the company had invested €365m, with a further €383m committed since. Contracts have been exchanged on portfolio additions on George’s Quay, Dawson Street and in Blanchardstown — part of which comprises the ‘Sapphire Portfolio’ previously owned by the Cosgrave Property Group. The combined rental income from these properties tops €47m.

Green REIT’s management said its first year in existence has been characterised by momentum, adding that it sees further room for income and capital growth. While the focus is on asset management and the development of the existing portfolio, the board is confident of further investment opportunities arising and said that discussions with lenders regarding additional debt financing are “well progressed”.

“The real estate market is recovering at a steady pace, alongside the general improvement in the Irish economy. We are well below our target loan-to-value ratio of 35% and, therefore, have headroom of a further €322m to invest in both new opportunities and our existing assets,” said chairman, Gary Kennedy.

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