Green to attract extra €150m funding

Property investment fund Green REIT will “shortly” put in place fresh funding of €150m, with scope to increase that amount.

The company — the first of the Irish real estate investment trusts (REITs) to float last year — said in its latest trading update, issued yesterday, that it will “shortly put in place a revolving credit facility with an initial limit of €150m, but with scope to increase this limit”.

Two months ago, Green said it expected to secure a new debt facility with its lenders to the tune of between €100m and €200m, over the coming months.

The company raised net proceeds of €685m from its initial public offering last summer and via a secondary share offering earlier this year.

The extra funds announced yesterday will provide Green REIT with “additional finance to fund capital expenditure projects and further acquisitions that the company may pursue”.

Chief executive Pat Gunne added: “In line with our stated strategy, our investment focus has remained on the Dublin office sector, which continues to lead the market recovery and will deliver attractive returns for our shareholders. Intensive asset management and selective development of our existing assets is now a key focus, together with further opportunistic acquisitions.”

Yesterday’s trading update showed that Green REIT is producing a portfolio income yield of 6.8%, and an investment income yield of 7.1%, on its €774m property portfolio. The company has a portfolio of 24 properties, with a combined annual gross rent roll of €52.9m, and a value of €813m. The acquisition of further assets will form part of its expansion plan and strategy of driving shareholder returns.

Chairman Gary Kennedy said the second half of the year has been a period of sustained activity, particularly with the acquisition of the Sapphire Portfolio, its single largest transaction.

“We look forward to continuing to drive value for shareholders through the range of asset management and development initiatives being implemented by the investment manager,” Mr Kennedy added.

Green’s share price was up by 0.4% to €1.30 yesterday.

During the third quarter of this year, Green completed two acquisitions, with a total rent roll of €24.3m per annum. The acquisitions — including the high-profile Sapphire portfolio — also expanded the company’s concentration in the greater Dublin area and increased its lettable area by 691,000ft sq.

Goodbody Stockbrokers said it forecasts that Green’s net asset value, which stood at 109c in June, should rise to around 117c by the end of this calendar year.