Green REIT’s management will not take part in its planned €385 million fundraising, according to formal documents published by the Dublin-listed property investment company.
Green last week announced it intended to raise a total of €399.8 million and €384.5 million net of costs through a share placing and an open offer to take advantage of investment opportunities in the Republic’s property market.
Yesterday, the firm published a prospectus giving details. According to the document, GP Holdings, owned by members of Green's management team, including chairman Stephen Vernon, will not be taking up its entitlement under the open offer planned by the company, or subscribing for any new shares.
GP Holdings owns 10 million shares – 3.2 per cent – of Green Reit. Under the terms of the open offer, through which Green plans to raise €299.9 million of the total, existing shareholders will be offered 19 shares for every 22 already held. The prospectus also states directors Gary Kennedy, Jerome Kennedy and Thom Wernick do not hold any existing shares in Green REIT and will not take part in the fundraising.
Along with the offer, Green also plans a placing that will raise €100 million of the total. It plans to issue 356.9 million shares through both schemes.
Enlarged share capital
Assuming it goes ahead, the new stock will amount to 53.3 per cent of the company's enlarged share capital. It intends the new shares will be admitted for trading on the Dublin market on May 2nd.
Green raised €310 million when it floated last July. Existing shareholders include hedge fund Paulson & Co, Franklin Templeton, Blackrock and Zurich Life.
Last year it bought Central Park, the Sandyford office block formerly owned by Treasury Holdings. The company warns that it is not guaranteed to refinance a bridge loan drawn down to finance this. If this were to happen, it may not be able recoup all of its €45 million investment in the deal, the prospectus notes.