Hibernia REIT raises €286m to buy more commercial property

Hibernia REIT (real estate investment trust) has raised €286 million in a share placing, as it seeks to beef up its commercial property portfolio.

In an interim management statement, the company said it raised €286 million in November.

In the same month the property investment fund completed the acquisition of The Forum building in Dublin’s IFSC for a total consideration of €37.8 million. This acquisition was announced last August.

Hibernia had cash of €233.5 million as of 31 December 2014, and the company’s €100 million revolving credit facility was undrawn.

Hibernia said the fit-out of 213 apartments in Block 3, Wyckham Point remains on schedule and within budget, with the first units expected to be completed and available for rent in the second quarter of 2015.

"The fourth quarter of 2014 saw a high level of transaction activity in the market ahead of the ending of the Capital Gains Tax relief for property on 31 December: much of this was at the sub-institutional scale or otherwise not of interest to us," Kevin Nowlan, the company's investment manager, said.

He said 2015 started positively, with a number of opportunities which the company is actively assessing.

“With the proceeds of our capital raise and significant debt capacity, we are well positioned to take advantage of the acquisition opportunities we expect in the next 12 to 18 months.”