Green REIT up for sale – In a surprise move, Green REIT has joined the growing number of funds that have decided to give up and hand back cash to shareholders.
The board of Green REIT has undertaken a comprehensive and carefully considered review of the strategic options open to the company to maximise value for its shareholders. As a consequence of this review, the board has taken a decision to initiate a process for the sale of the company or its portfolio of assets.
The board has a strong conviction in the value of the company’s assets, its management and its business plan, as well as in the Irish commercial real estate sector. However, despite the strong financial and operational performance of the company, it trades on a discount and this is at the core of the board’s decision. The sale process will commence immediately.
Commenting on the decision Green REIT’s chairman Gary Kennedy said: “Green REIT owns one of the rare prime office and logistics portfolios of scale in Ireland, underpinned by strong tenants and a supportive market and macro environment. Notwithstanding this, the company’s share price has been subject to a material and persistent structural discount to its net asset value per share for over three years now. Our primary responsibility as a board is to deliver shareholder value. Given this imperative and following detailed analysis and due consideration, we have decided to focus on the sale of the company or its portfolio of assets. It is the board’s view that this is demonstrably in the best interests of our shareholders.”
Green REIT owns a EUR1.48 billion portfolio of prime office and logistics assets (95% Dublin; 88% office), secured with blue-chip tenants delivering EUR75.5 million of annualised contracted rent, with visibility to grow this to EUR83 million within 18 to 24 months.
It believes that there is significant development opportunity within the existing portfolio, comprising a 310 acre prime logistics park (56 acres developed to date), located adjacent to Dublin’s airport, the main motorway network and close to Ireland’s principal port, and 400,000 square feet (37,200 square metres) of prime office development within an existing office campus in Dublin.
The manager has informed the company that it is also willing to explore the termination of its existing investment management agreement. Stephen Vernon and Pat Gunne, the co-founders of the manager say that neither they nor the manager will make an offer to acquire the company nor will they otherwise directly or indirectly participate in any third party offer.
GRN : Green REIT up for sale