Green REIT plc, a newly-incorporated Irish property investment company, today announces its intention to seek a primary listing for its ordinary shares on the Official List of the Irish Stock Exchange, and a premium listing on the Official List of the UK Listing Authority and admission to trading on the regulated market for listed securities of the Irish Stock Exchange and on the main market for listed securities of the London Stock Exchange. The Company is seeking to raise gross proceeds in excess of €200 million pursuant to an institutional placing of Shares and a subscription of Shares by members of the Management Team.
It is expected that Admission will become effective and dealings in the Shares will commence at 8.00 am on July 18, 2013. The Company will elect to become an Irish Real Estate Investment Trust following Admission and is expected to be the first REIT established in Ireland following the recent introduction of REIT legislation by the Irish Government.
The Company’s objective is to assemble a portfolio of freehold and long leasehold properties consisting primarily of commercial property in Ireland, principally Dublin. The Management Team intend to focus on creating both sustainable income and strong capital returns for the Company with a target total shareholder return of 10% to 15% per year (pre-taxation) when fully invested. Green Property REIT Ventures Limited, an entity affiliated with Green and led by Stephen Vernon and Pat Gunne, has been appointed as the sole investment manager of the Company.
The Company will have an experienced Board of Directors comprising four non-executive Directors, and chaired by Gary Kennedy (currently chairman of Greencore Group plc and a director of Elan Corporation plc). Jerome Kennedy (currently a director of Total Produce plc, Independent News & Media PLC, Caulfield McCarthy Group Retail and former managing partner in KPMG Ireland) and Thom Wernink (currently non-executive director of SEGRO and Atrium European Real Estate, and former chairman of the Management Board (CEO) of Corio), will serve as independent non-executive Directors. Stephen Vernon, a nominee of the Investment Manager and chairman of Green will also serve on the Board as a Director.
The Management Team intends to closely align its interests with shareholders in the Company by indirectly (through one or more companies) investing €10 million in the Company through a subscription of Shares (conditional on Admission) with a commitment, subject to certain customary exceptions, to retain the entire holding for at least three years
Commenting on today’s announcement, Gary Kennedy, Chairman of Green REIT plc, said: “The establishment of Ireland’s first REIT is positive for the Irish commercial property market, providing stability with long-term capital, and represents a significant commitment to Ireland by an established team with detailed knowledge of the dynamics of this market. Our aim is to utilise the strength and experience of Stephen Vernon and his team and their network of relationships to build a portfolio of assets which should deliver a sustainable income stream and, over time, strong capital returns for shareholders. I am honoured to accept the appointment as Chairman of the Company.”
Stephen Vernon, Non-Executive Director of Green REIT plc said: “The recently introduced REIT legislation in Ireland, together with the Management Team’s strong track record of value creation for shareholders, have enabled us to create an exciting investment vehicle which is well placed to capitalise on the many opportunities we see emerging in the Irish commercial property market, both now and as the cycle continues to evolve. We look forward to using our experience and industry relationships to create sustainable and long-term value for Shareholders.”
Source: FTI Consulting
