Hibernia REIT

Is there anyone who is considering investing in upcoming hiberni reit.
Goodbody are very hesitant about distributing the prospectus even though fact sheet which they have provided explicitly states that one should not invest without consulting prospectus.
Makes you wonder if something fishy in it which they don't want exposed before people commit their money.
Observations/views on above would be greatly appreciated.

Well first of all why would you want to invest in a REIT and how does this one meet your criteria?

For me I it is a speciality and should not find it's way into most portfolios:
- no history
- will be highly concentrated in a small economy
- no matter how it is stretched it will not give much diversity
- at 350m it is a penny stock

A low risk portfolio should have about 6% allocated to property and that should at least be diversified over Euroland and this does not meet any of that criteria.

If you want to just speculate, then it is as good a bet as any other. However recognize that it is a high risk strategy.

Worth mentioning the Green REIT experience here. The investors who got in on the ground were a raft of big battalions lined up by Davy so the regular punters who bought it after it listed did so after it had jumped to a 20% premium.Together with costs estimated at 5% they were 25% behind the gain line on Day 2.

Of course this one might not go to the same premium.

Jim2007 said:

If you want to just speculate, then it is as good a bet as any other. However recognize that it is a high risk strategy.

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Well said Jim. These remind me of the property expos based on Bulgaria or France which came to Ireland in the boom. How many investors got badly burnt, buying off plan etc.etc.

If you don't know or understand it keep away from it. If you want a safer bet, purchase equities in British Land or Land Securities.

Rory Gillen has done a key post on the Green Reit PLC

I think that that thread is a good systematic approach to it.

Brendan

Hibernia has raised €365m through a placing.

http://www.irishtimes.com/business/...a-reit-places-shares-with-investors-1.1619355

The company announced this morning it had placed 361 million shares with institutional investors and others, giving the comapny an initial market capitalisation of €365 million.

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Well, it has a market cap of €365m, so I presume that is what it has raised.

Rad1 said:

Is there anyone who is considering investing in upcoming hiberni reit.
Goodbody are very hesitant about distributing the prospectus even though fact sheet which they have provided explicitly states that one should not invest without consulting prospectus.
Makes you wonder if something fishy in it which they don't want exposed before people commit their money.
Observations/views on above would be greatly appreciated.

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It is a regulation that the Prospectus must be made available for viewing before listing. I think if you look for the Hibernian REIT website you should find it somewhere on it. That's where I found the Green REIT Prospectus. Failing that, call the Irish Stock Exchange and enquire where and when a copy might be available.