Hibernia is being delisted after the €1.1bn Brookfield deal closes
Hibernia Reit has withdrawn from Euronext Dublin following the completion of its sale to Brookfield Asset Management, leaving only a real estate investment trust on the Irish Stock Exchange.
The €1.1 billion deal, announced in March, was finalized after Friday’s close and announced to the market this morning, with shares canceled effective as of business start.
The real estate investment company’s shareholders, including founder and CEO Kevin Nowlan, will receive payments for their shares through July 1.
Mr. Nowlan, who will remain in his role, is expected to receive approximately EUR 13 million from the transaction. His annual salary is more than one million euros.
Hibernia’s entire board of directors has resigned as part of the transaction and will be replaced by a single representative from the Canadian investor group.
Toronto-based Brookfield, one of the world’s largest owners and operators of real estate with more than $250 billion in real estate assets, rushed to buy Hibernia in March.
The deal represented a nearly 36 percent premium to Hibernia’s closing price before it was announced.
The Irish group’s shares have traded at a discount to net worth for six years, making it an attractive takeover target.
Other Irish-listed Reits that have been privatized in recent years for similar reasons are Green Reit and Yew Grove – like Hibernia, Office Reits.
Ires Reit, a residential property owner and operator, is now the only one of the four Irish Reits to remain a publicly traded company.
Hibernia, the second Irish riding after Green, was founded by Mr Nowlan and his father Bill after the Government introduced legislative changes to facilitate them and provide generous tax incentives to encourage investment.
The company went public in 2013 and initially raised 365 million euros.
Mr. Nowlan was appointed chief executive of Hibernia in 2015 after the group internalized its investment manager, WK Nowlan Reit Management, of which he was a managing director.
The real estate company generated strong returns for investors in its early years when Mr. Nowlan, formerly a portfolio manager at Nama, focused on acquiring unloved properties with under-realized value.
Shares were trading 43 per cent above list prices at one point in 2016 but the outperformance did not last and Irish reits have been undervalued in recent years as easy gains have become increasingly difficult to find in the Irish property market following the crash.
https://www.independent.ie/business/irish/hibernia-delists-from-stock-exchange-as-11bn-brookfield-deal-closes-41770133.html Hibernia is being delisted after the €1.1bn Brookfield deal closes