A real estate affiliate of Brookfield Asset Management has agreed to acquire the entire share capital of Hibernia REIT, an Irish real estate investment trust. The deal values the business at about €1.09 billion ($1.2 billion). Hibernia REIT owns and develops property and specializes in Dublin city center offices.
March 25, 2022
LONDON, UK: Benedict Real Estate Bidco Limited, a subsidiary of one of Brookfield’s real estate private funds, has agreed to acquire entire share capital Hibernia REIT plc at the rate of €1.634 for each Hibernia REIT share.
The acquisition values the entire issued and to be issued share capital of Hibernia REIT at approximately €1.089 billion on a fully diluted basis.
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 they continue 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.”
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 Bidco.”
Brookfield Asset Management is a leading global alternative asset manager with approximately US$690 billion of assets under management across real estate, infrastructure, renewable power and transition, private equity and credit. Brookfield owns and operates long-life assets and businesses, many of which form the backbone of the global economy.
Brookfield is one of the world’s largest owners and operators of real estate with over $250 billion of real estate assets globally, and an office portfolio of approximately 200 million square feet worldwide. In Europe, Brookfield’s real estate business comprises approximately $50 billion of assets across office, student housing, logistics, life sciences, residential, retail and hospitality.
Hibernia REIT is an Irish Real Estate Investment Trust (REIT), listed on Euronext Dublin and the London Stock Exchange. Hibernia REIT owns and develops property and specialises in Dublin city centre offices. Its business model is to deliver income and capital growth for its shareholders through asset management, development activity and capital recycling, while using modest levels of financial leverage. Asset clustering and ESG excellence are two strategic priorities for Hibernia REIT.