Friday, April 04 16:11:53
Dublin-listed property investment group, Green REIT, this afternoon said it wants to raise E400m through an open share placing with the proceeds to be used to buy more property.
It plans to issue 356,969,696 New Ordinary Shares at 112 cent per share.
The issue price reflects a 5.5pc discount to the Closing Price on 3 April 2014, Green REIT said.
In a statutory note to the Irish Stock Exchange, it said: "The Management Team, led by Stephen Vernon and Pat Gunne, focuses on creating both sustainable income and strong capital returns for the Group with a target total shareholder return of 10pc to 15pc per annum (pre-taxation) both when the Original Net Proceeds are fully invested and when the Net Proceeds are fully invested."
Commenting on today's announcement, Gary Kennedy, Chairman of Green REIT plc, said the group's timing in the Irish property market is just right.
"Green REIT raised gross proceeds of E310 million in July 2013 and established itself as the first real estate investment trust in Ireland. The success of our listing and capital raise was based on a combination of our proven and experienced management team and our attractive timing. We established ourselves as an investor in the Irish commercial property market when market activity was increasing and values started recovering."
"We have now successfully deployed E335 million of equity and debt over a nine month period - consistent with our stated strategy. Our objective now is to raise additional capital to grow the size of our portfolio, enhance our income stream and drive shareholder returns," Mr Kennedy said.