The real estate investment trust Green REIT is to be acquired by the UK property company, Henderson Park, in a deal valuing the company at €1.34 billion.

Green REIT shareholders will receive €1.91 per share in cash as part of the deal.

That represents a premium of around 25% on the closing price of €1.53 on 12 April, the last trading day before Green announced it was for sale.

Green REIT was the first property investment trust to float in Ireland in 2013, following changes in Budget 2013 which paved the way for the establishment of the tax-efficient publicly quoted property investment funds. 

Since then it has built up a portfolio of properties - mainly consisting of offices in Dublin city centre.

More recently it had also expanded into logistics, making a number of investments around Dublin Airport.

In April Green REIT announced it would seek a buyer for the company, or its assets, as shareholders had been stuck with a "material and persistent" discount between its share price and the value of its portfolio.

At the end of July it announced Henderson Park as its preferred bidder.

Henderson Park was established three years ago and has quickly built up a portfolio of properties around Europe.

Last month it made its first move in the Irish market, partnering with Chartered Land to acquire the Heuston South Quarter development in Kilmainham, Dublin.

"The portfolio offers exposure to high-quality properties located predominantly in Dublin, leased to blue chip tenants, and two strategic development sites," Henderson Park CEO Nick Weber.

"We believe in the short-term and long-term prospects of the Irish market with its strong macroeconomic backdrop and underlying real estate fundamentals."

"Following a highly competitive process, the cash offer by Henderson Park to acquire the company represents an attractive outcome for shareholders delivering a premium to the share price prior to the announcement of the sale process and to Green REIT’s Net Asset Value," said Green REIT chair Gary Kennedy.

Green REIT's profit falls in year to June

Green REIT saw profits after tax fall in the year to the end of June, despite a rise in earnings.

In results published alongside its acquisition announcement, Green REIT reported a 21% rise in earnings in the 12 months to the 30 June 2018 to €44.6m.

However profits after tax fell by 36% to €91.8m.

During the period its portfolio value rose by 8% to more than €1.53 billion, with new rental terms agreed at its One Molesworth Street and Central Park buildings.

It also agreed a number of leases at its Horizon Logistics Park, near Dublin Airport and the M50, with planning permission granted for further developments there.