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US fund taps former Nama and Applegreen executives for Irish IPO

US hedge fund York Capital has lined up former executives from Nama and Applegreen to join the board of an Irish industrial and logistics trust, called Core Industrial, that it plans to float.

Core Industrial issued a statement on Tuesday confirming that York Capital plans to list the fledgling company on the junior Dublin and London stock markets, raising up to €225 million in the process.

The Irish Times first reported the plan last month, and that it was lining up Daniel Donovan, a former partner with UK property investment firm Grainmarket Asset Management and one-time Lehman Brothers employee, as Core Industrial’s chief executive, with Dublin-based property figure William Redmond hired as the company’s chief investment officer. Both have worked with York Capital in recent years and are set to benefit from a potentially lucrative incentive scheme at the listed company.

The announcement on Tuesday also revealed that Irish fuel forecourt retailer Applegreen’s former chief financial officer, Paul Lynch, and Nama’s one-time head of asset recovery, Michael Moriarty, will join Core Industrial’s board. Andrew Craig, a former audit partner with PricewaterhouseCoopers, will serve as the company’s non-executive chairman, while Diego Arroyo Ornelas, a senior vice president at York Capital, will also be on the board.

The New York-based fund, which has about $20 billion (€16.2 billion) of assets under management, plans to put almost €83 million of industrial units into the quoted company, they said. This includes property in locations like Rathcoole, Clondalkin and Finglas in Dublin that it snapped up after the property crash.

York will also sell about 18 million shares at the initial public offering (IPO) price of €1 each as part of the IPO, leaving it with a remaining 9.9 per cent stake in the company, which will have an initial market value of about €250 million.

The industrial sector emerged last year as the hottest area of the Irish commercial property market, delivering total returns of about 14.5 per cent for the 12 months to the end of September, according to the MSCI Ireland Property Index. That compares with a 10.5 per cent return during the same period for the office market, which initially led the real-estate recovery after the crash, and 10.8 per cent for the retail investment sector.


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