Green REIT has entered formal discussions with an affiliate of Henderson Park Capital Partners regarding a takeover of the company.
Green REIT has opted to proceed talks with the private equity firm, which had been shortlisted alongside Kennedy Wilson and the commercial arm of Germany’s DekaBank.
The firm said in a statement: “Having assessed the bids received as part of the sales process in detail, with the assistance of its advisers, the independent committee of the board has entered into discussions with an affiliate of Henderson Park Capital Partners UK LLP regarding a possible offer to be made by Henderson Park for the issued, and to be issued, share capital of the company.”
It added: “There can be no certainty that a firm offer will be made, nor as to the terms on which any offer will be made.”
Indicative bids for Green REIT came in last month (12 June) and it is thought that around eight firms took part.
Henderson Park, Kennedy Wilson and DekaBank submitted best and final bids ahead of a 25 July deadline.
Green has a €1.5bn (£1.35bn) portfolio of largely office and logistics assets. Some 83% of the portfolio is made up of offices in the Dublin area.
Both Kennedy Wilson and DekaBank are regular buyers of Irish real estate, but Henderson Park, set up in 2016, has only recently started making an appearance in the market. In May, the firm, alongside Chartered Land, bought mixed-use campus Heuston South Quarter in Dublin from Marathon Asset Management for €222m.
Other names previously linked to the portfolio include Irish Life, Goldman Sachs, Brookfield and Union, the investment arm of DZ Bank Group.
The sale process is aimed at generating more value for Green REIT’s shareholders. Its share price has been heavily discounted to the firm’s net asset value for more than three years. Green REIT’s half-year results to 31 December show its share price trading at a 20% discount to its net asset value.
Green REIT, co-founded by Stephen Vernon and Pat Gunne, became the first Irish REIT to float on the Irish stock market when it raised €300m in an initial public offering in July 2013.
To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette
