New property investment vehicle Hibernia REIT has successfully placed shares with investors on the Dublin and London stock exchanges

The company announced this morning it had placed 361 million shares with institutional investors and others, giving the comapny an initial market capitalisation of €365 million.

Conditional dealings in the shares are expected to commence on the exchanges later today.

The company formal admission to the stock exchange is expected to take place later this month.

Hibernia REIT plans to follow Green REIT, the first trust to float since the passage of last year’s Finance Act paved the way for the establishment of these property investment vehicles here.

REITs are quoted companies that own or operate commercial property. They are not taxed on the rental income as long as they pay 85 per cent of it to their shareholders as a dividend.

Hibernia REIT’s objective is to assemble a portfolio of income-producing properties mainly in the commercial space and in the greater Dublin area, the company said last month.

The company's portfolio will be managed by Kevin Nowlan, a former portfolio manager with Nama.