Green REIT has put itself up for sale following a strategic review, in a bid to “maximise value for its shareholders”.
The listed company said as a consequence of the review, it has taken a decision to initiate a process for the sale of the company or its €1.48bn real estate portfolio of prime office (88%) and logistics assets.
The Irish real estate investment trust said its decision to focus on the sale of the company or its portfolio is due to the ongoing “structural discount in the company’s share price relative to its net asset value per share”.
At midday, Green REIT shares on the Irish Stock Exchange traded 8.3% higher at €1.66, valuing the company at €1.16bn. The lowest close of day price achieved by Green REIT shares during the past year was €1.33.
Green REIT’s chairman Gary Kennedy, said: “Green REIT owns one of the rare prime office and logistics portfolios of scale in Ireland, underpinned by strong tenants and a supportive market and macro environment.”
95% of the assets are situated in Dublin.
Notwithstanding this, the company’s share price has been subject to a material and persistent structural discount to its net asset value per share for over three years now, Kennedy said.
“Our primary responsibility as a board is to deliver shareholder value. Given this imperative and following detailed analysis and due consideration, we have decided to focus on the sale of the company or its portfolio of assets.
“It is the board’s view that this is demonstrably in the best interests of our shareholders.”
The company’s board has appointed JP Morgan Cazenove as lead financial adviser to assist with its review of any proposals made for the company or its portfolio of assets.
There can be no certainty that an offer will be made, nor as to the terms on which any offer will be made, Green REIT said.