Hibernia Reit seeking €300m to fund further property deals

Property investment company Hibernia Reit has said it intends to raise €300 million in a placing and open offer of shares to fund further commerical property deals.

Hibernia said it would issue 285,317,459 shares at €1.05 per share, a 7.05 per cent reduction on yesterday’s closing price.

The group said net proceeds of approximately €287million after expenses is expected to be invested within 18 to 24 months of admission.

Hibernia said the additional funds were required as it has spent the proceeds from its initial public offering (IPO) in December.

The group raised €372 million from the IPO. Since then it has invested €398 million and committed a further €78 million in connection with 13 transactions, one of which is pending completion.

"We have achieved a significant amount since the IPO in December 2013, building a portfolio of Dublin properties primarily in Dublin's Central Business District which have increased in value by 9.3 per cent from acquisition to August 31st 2014, a weighted average hold period of 2.9 months. We have undertaken 13 transactions to do this, with 87 per cent of the acquisitions (by cost) executed off-market and 44 per centthrough loan purchases," said Hibernia's investment manager Kevin Nowlan.

“There continue to be significant levels of attractive acquisition opportunities in our core Dublin markets, particularly in the off-market and loan spaces, and we anticipate this remaining the case for the foreseeable future. Furthermore, the portfolio we have assembled to date offers a number of development, redevelopment and refurbishment opportunities: we will use some of the funds we are seeking to raise to take advantage of these opportunities,” he added.

Among the properties acquired by the group are the Forum Building in Dublin's IFSC for €37.8 million, Guild House and Commerzbank House in the IFSC (also in the IFSC) for a combined €90.75 million, Montague House and Hardwicke House, near Hatch Street for a combined €60 million, and the Observatory Building at Sir John Rogerson's Quay for €52.25 million.

An Extraordinary General Meeting to approve the shareholder resolutions on which the Capital Raise is conditional is expected to be held on November 3rd at the Marker Hotel in Dublin.