Ireland is about to get its first real estate investment trust.
Green REIT Plc plans to raise €200 million in an initial public offering to focus on focus on commercial real estate in Dublin.
Real estate investment trusts were formally approved by the legislature earlier this, in a move that many hope will help the country's property market recovery.
Ireland was one of the markets hardest hit by the global financial crisis, with property prices fall over 60 percent from their peak. More than four years later, the market appears to making a return.
Ireland's National Asset Management Agency (NAMA) recently reported encouraging signs of recovery for the market. NAMA was created in 2009 to remove bad loans from Irish banks. The agency said a portfolio of loans backed by Irish property attracted interest from numerous international funds.
The market still has a long road to full recovery, but many believe the introduction of REITs could speed up this process. A common investment vehicle in the U.S., U.K. and other global markets, REITs are attractive to international investors, private equity and pension funds, offering tax breaks and exposure to a range of property. It would also allow smaller investors the opportunity to invest in prime real estate.
Green REIT is looking for returns of 10 percent to 15 percent a year, according to Bloomberg. The shares would trade on the London and Irish stock exchanges.
"The establishment of Ireland's first REIT is positive for the Irish commercial-property market, providing stability with long-term capital, and represents a significant commitment to Ireland by an established team," chairman of Green REIT Gary Kennedy said in the announcement.
Green Property REIT Ventures Ltd. will be the only investment manager, Bloomberg reported. Green REIT will begin trading on July 18.