Brookfield set to buy Hibernia REIT for €1bn

Brookfield is set to buy Ireland’s Hibernia REIT for just over €1bn. Hibernia’s board has unanimously recommended the cash offer by Benedict Real Estate Bidco, a subsidiary of one of Brookfield’s real estate private funds. The bidco will now acquire the entire issued and to be issued share capital of Hibernia REIT, which is listed on Euronext Dublin and the London Stock Exchange, owns and develops property and specialises in Dublin city centre offices. Under the terms of the acquisition, Hibernia REIT shareholders will be entitled to receive €1.634 in cash for each Hibernia REIT share, comprising the offer price of €1.60 and a 3.4c dividend per share. The deal, including the dividend, values the entire issued and to be issued share capital of Hibernia REIT at approximately €1.089bn (£910m), on a fully diluted basis. The price, excluding the dividend, represents a 35.6% premium to Hibernia REIT’s closing share price of €1.180 on 24 March. Danny Kitchen, chair of Hibernia REIT, said: “Despite significant progress against its strategic objectives and a track record of successfully recycling capital into value accretive opportunities, Hibernia REIT has traded at a persistent discount to its prevailing EPRA NTA per share. The acquisition recognises the company’s prospects and the quality of its portfolio of assets and delivers an acceleration of the value we expect to be created from completion of Hibernia REIT’s major office development projects. “The acquisition allows Hibernia REIT shareholders to realise the value of their investment in Hibernia REIT in cash at a significant premium to Hibernia REIT’s prevailing share price and a premium to its EPRA NTA per share at 31 December 2021, when taking account of the directors’ current estimates of expected latent tax and debt breakage costs for the bidco.” Brad Hyler, managing partner and head of European real estate at Brookfield, said: “We have built a strong relationship with Hibernia REIT’s management team and are excited to partner with them in the next phase of the company’s development by combining Brookfield’s global real estate expertise with Hibernia REIT’s established operating platform and portfolio of high-quality standing and development assets in Dublin’s most strategic submarkets. “We look forward to supporting Hibernia REIT as it continues to create value by capturing demand from top global tenants for modern, sustainable buildings with best-in-class amenities and wellness credentials in prime locations.” The global alternative asset manager has approximately $250bn of real estate assets globally, and an office portfolio of approximately 200m sq ft worldwide. In Europe, Brookfield’s real estate business comprises some $50bn of assets across offices, student housing, logistics, life sciences, residential, retail and hospitality. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews Photo from Hibernia REIT