Hibernia REIT looks to raise €300m to fund additional purchases
Irish real estate investment firm Hibernia REIT plans to raise 300 million euros ($379 million) in a placing and open offer of shares to fund more property acquisitions, having spent the proceeds from its initial public offering (IPO).
Property prices and rents have begun to rise in Ireland after their collapse in a 2008 real estate crash, leading to a surge in demand from investors abroad and new publicly listed companies at home for hotels, office blocks and retail units.
Hibernia, which raised 372 million euros from its IPO last December, said it would issue the new stock at 1.05 euros per share, a 7.5 percent discount on Tuesday’s closing price.
Hibernia, which has seen its portfolio of mainly Dublin-based office spaces increase in value by 9.3 percent in less than a year, said a shortage of supply in the capital would push up rents over the next 2-3 years.
“Our view is that there is still a significant amount of opportunities out there and there is considerable growth to go on the rental side due to the under supply situation,” Hibernia Chief Executive Officer Kevin Nowlan told Reuters. Source: Reuters.