Trio head into second-round bids for Green REIT

Three firms are competing to acquire Dublin-listed property group Green REIT, or some of its assets. Kennedy Wilson and the commercial arm of Germany’s DekaBank are understood to be in the running, with the third contender thought to be European private equity firm Henderson Park. The contenders are expected to submit second-round bids by midday tomorrow (19 July). One source close to the process said: “The exact form of the transaction hasn’t been determined but an asset sale is unlikely.” Green, which put itself up for sale in April, has a €1.5bn (£1.35bn) portfolio of largely office and logistics assets. Some 83% of the portfolio is made up of offices in the Dublin area. Both Kennedy Wilson and DekaBank are regular buyers of Irish real estate, but Henderson Park, set up in 2016, has only recently started making an appearance in the market. In May, the firm, alongside Chartered Land, bought mixed-use campus Heuston South Quarter in Dublin from Marathon Asset Management for €222m. Indicative bids for Green company came in earlier last month (June 12) and it is thought that around eight firms took part. Other names previously linked to the portfolio include Irish Life, Goldman Sachs, Brookfield and Union, the investment arm of DZ Bank Group. The sale process is aimed at generating more value for Green’s shareholders. Its share price has been heavily discounted to the firm’s net asset value for over three years. Green’s half-year results to 31 December show its share price trading at a 20% discount to its net asset value. Green, co-founded by Stephen Vernon and Pat Gunne, became the first Irish REIT to float on the Irish stock market when it raised €300m in an initial public offering in July 2013. All parties declined to comment. To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette