Ireland's Second REIT Raises €365 Million

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Hibernia REIT became the second real estate investment trust to launch in Ireland, raising €365 million ($503 million) in an initial public offering. 

The REIT follows Green REIT onto the stabilizing property market. It raised slightly more than the company's anticipated 350 million euros, which it plans to use to build a mainly commercial property portfolio -- principally office space in Dublin, Reuters reports. 

"We believe a unique opportunity exists in Ireland to build an attractive property investment portfolio in light of current property values, the supply of assets on the market and the outlook for rents," Chief Executive Kevin Nowlan said in a statement.

Ireland's government formerly approved real estate investment trusts earlier this year -- allowing investors to own property through a company --  hoping it would help improve the country's property market. This summer, Green REIT was the first to enter, raising €200 million in its IPO. The REIT made its first purchase in October, buying a commercial property portfolio for €127.6 million from Danske Bank Ireland. 

The country is set to exit its €85 billion euro bailout this week, spearheading among indebted euro zone states, according to Reuters. 

After suffering heavily during the financial crisis, Irish commercial property values increased in October, the first time in six years. 

Hibernia plans to provide annual shareholder returns of 10 to 15 percent.

"This will bring further investment capital to the Irish property market and will also provide increased choice for investors," Finance Minister Michael Noonan said in a statement.