The recent €250M acquisition of The Square shopping centre in Tallaghat has laid the ground for a summer initial public offering of a new retail REIT.
As first reported by Bisnow, asset manager Sigma had been seen by the market as the next company to join the coterie of Irish REITs.
According to the Sunday Business Post, industry sources said that Sigma will start to garner early interest with potential shareholders, advised by stockbroker Davy in the coming weeks.
The company manages assets on behalf of Targeted Investment Opportunities, a subsidiary of the U.S. private equity fund Oaktree and is likely to raise approximately €300M in the initial offering.
The asset manager increased net operating income for its portfolio by 10%, with projections of further growth. The rent roll has doubled in some areas, such as the Navan Retail Park.
IPOs are a popular way for funds to partially sell down their interests in assets while remaining a significant shareholder.
Other recent IPOs include Oaktree deleveraging some of its housing assets through Glenveagh, and York Capital's proposed €250M flotation of Core Industrial.
Sigma, led by Marcus Wren, has the country’s largest retail portfolio, with an estimated value of €500M.
Unlike companies that floated a few years ago like Green and Hibernia, Sigma has a seed portfolio for the new listed company and would only raise further equity to fund new acquisitions.
While Sigma already has 13 shopping centres and retail parks, the Oaktree acquisition is considered to be the move that bring it closer toward an IPO, as it gives the company a large 'cornerstone' asset that will appeal to investors.
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