Hibernia REIT Plans $476 Million IPO for Irish Property

Hibernia REIT Plc is seeking to raise about 350 million euros ($476 million) in an initial public offering to create Ireland’s second real estate investment trust.

Hibernia REIT would mostly own commercial real estate in the Irish capital, the company said in a statement today. The company’s management will seek shareholder returns before tax of 10 percent to 15 percent a year when fully invested, according to the statement. The shares would be listed on the Dublin and London exchanges.

Irish commercial properties are generating annual income returns of 9.7 percent, more than any other country, according to data compiled by Investment Property Databank Ltd. That’s drawing interest from investors seeking to buy real estate or debt from lenders including Ireland’s National Asset Management Agency, according to a May 2012 presentation on NAMA’s website.

“The deleveraging of the NAMA book and the Royal Bank of Scotland Plc book is only really starting to get going,” Kevin Nowlan, chief executive officer of Hibernia’s sole investment manager, Nowlan Property REIT Management Ltd., said in an interview. “There are going to be plenty of opportunities coming down the track.”

NAMA was set up to take on and sell real estate mortgages purged from Ireland’s lenders.

Hibernia plans to start the share sale within two weeks, Nowlan said. Green REIT Plc (GRN) became Ireland’s first REIT when it listed on the Irish Stock Exchange in July. The company’s share price has risen about 9 percent since then.

To contact the reporter on this story: Neil Callanan in London at ncallanan@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net

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