Green REIT to secure debt facility

Property investment fund Green REIT is expected to secure a new debt facility of €100m to €200m with its lenders over the next month-and-a-half.

Green REIT to secure debt facility

Earlier this week, when publicising its maiden set of annual results, the company’s management said that while it still has a “war-chest” of over €320m to spend on acquisitions and investments, talks with lenders regarding additional debt financing are “well progressed”.

According to a company spokesperson, a facility in the region of €100m to €200m is being negotiated and the company anticipates agreement to be reached within “six-to-eight weeks”. They added that no other funding options — other than debt — are currently being considered. While no comment was made regarding the identity of potential new lenders, it is understood that Green is talking to banks here and in the UK.

The Irish banks have restarted property development lending and one of Green’s rival investment trusts, Hibernia REIT recently agreed a €100m three-year revolving credit facility with Bank of Ireland to fund its ongoing investment strategy.

The first of the new Irish real estate investment trust (REITs) to float, Green raised net proceeds of €685m from its IPO last summer and via a secondary share offering earlier this summer. Total capital allocated — via previous acquisitions and investments and money committed to future deals — stands at €748m. Speaking earlier this week, Green chairman Gary Kennedy said the company still has headroom of a further €322m to invest in both new opportunities and existing assets.

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