O’Flynn Construction is to buy out its majority partners in the £100m Tiger Property Fund, which owns about 50 properties in the UK.
Goodbody Stockbrokers, a subsidiary of AIB Bank, manages the 80.6% stake in Tiger on behalf of a group of 210 private Irish clients with the remaining stake owned by O’Flynn.
The £80m buy out follows Tiger’s decision last year to diversify outside the UK market into Europe.
Last October it announced plans to invest more than £330m in Germany, Italy, Poland, Scandinavia and the Benelux countries.
Two months later it sold its Arndale Shopping Centre in Headingly, Leeds for £23m.
Nevertheless most of its properties are still in the UK.
The buyout terms indicate that since it was established in December 1999 it has achieved an approximate 50% return for the original investors who contributed to two cash calls in the intervening years.
The fund recorded an operating profit of £17.4m (€25.4m) in 2005 and had £100.2m in shareholders funds at the end of that year.
Under the terms of the deal, Goodbody Stockbroker’s clients will receive €2.70 for each of the 45.5m shares in circulation.
References: EGi News 31/05/06
