Irish investment group Tetrarch Capital is lining up a stock market listing to raise capital for some of its property development projects, which include the Citywest Hotel in Saggart, Co Dublin.
The Irish Times has learned that Tetrarch has appointed advisers in recent weeks, and is eyeing an initial public offering of shares in the autumn. It would be expected to list in Dublin and London.
It is not clear how much the company would seek to raise but sources indicated that the level could be between €200 and €300 million.
The move is being pursued to raise capital for the company’s various projects while also offering a potential exit event for investors.
When asked to comment, a spokesman for Tetrarch said: “We are considering a number of potential strategic options for the business, but we cannot comment further at this time.”
Tetrarch co-owns and manages a broad range of assets, including the Mount Juliet hotel and golf resort in Co Kilkenny, the Powerscourt hotel in Enniskerry, the five-star Marker in Dublin’s Grand Canal Dock, and the four-star Killashee hotel and spa near Naas, Co Kildare.
South city centre
In addition, it has a number of development projects on its books, including a large site bounded by Townsend Street, Gloucester Street and Moss Street in Dublin’s south city centre, where it is planning an €80 million mixed-use scheme.
It is also pursuing a €35 million expansion at its Dawson Hotel opposite the Mansion House in Dublin that will involve the neighbouring Royal Automobile Club property. And it has plans for a 158-bedroom hotel at Sackville Place, close to O'Connell Street in the capital.
There is also about 80 acres of unzoned land at Citywest that could potentially be developed for residential purposes.
Tetrarch, which is led by chief executive Michael McElligott, took full ownership of the Citywest Hotel in 2017, by buying out the interest of its joint-venture partner, California-based Pimco.
Citywest was acquired out of receivership by Tetrarch and Pimco in September 2014 for about €30 million. The pair then invested about €12 million in upgrading the four-star property. The campus was originally developed by the late Jim Mansfield who lost control of the property following the 2009 economic crash.
Earlier this year, Tetrarch agreed terms to acquire the Waterways complex in Sallins, Co Kildare, which comprises an unfinished hotel with 42 bedrooms, 11 apartments and other buildings.
It is not clear what assets might be included in the IPO process. For example, international group Midwest Holdings is a significant investor in a number of the assets, including the Powerscourt and Marker hotels.
According to its website, Tetrarch manages assets with a value of about €450 million, and its accommodation extends to more than 2.5 million square feet. It also oversees a significant bank of development land within commuting distance of Dublin city.
It directly employs a team of 20 at its offices on St Stephen’s Green. It has more than 1,400 staff working within the portfolio of hotel and hospitality assets that it co-owns and manages.
Tetrarch began life as Brehon Capital in 2011, before changing its name four years later.