Monday 22 December 2014

Green REIT pays €32m for two Dublin office buildings

Published 21/06/2014 | 02:30

Hibernia REIT CEO Kevin Nowlan (centre), with finance minister Michael Noonan and Irish Stock Exchange chief Deirdre Somers on the day Hibernia REIT listed on the Irish Stock Exchange in December.
Hibernia REIT CEO Kevin Nowlan (centre), with finance minister Michael Noonan and Irish Stock Exchange chief Deirdre Somers on the day Hibernia REIT listed on the Irish Stock Exchange in December.

PROPERTY firm Green REIT has paid more than €30m for two Dublin office buildings, in the latest deal in the resurgent commercial property market.

In a statement to the Irish stock exchange, the real estate investment trust said it had agreed terms to buy two office blocks on Harcourt Street in the centre of Dublin for a combined €32m.

The property at 76 to 78 Harcourt Street extends to approximately 24,400 sq ft.

It was built in the early 1980s and designed with a mock Georgian façade to blend in with the rest of Harcourt Street. Behind the façade are contemporary open plan offices.

The building has been let since completion to a government tenant at a passing rent of €1.01m per annum.

Green has also taken over 4 and 5 Harcourt Road. The detached office building was constructed in the 1970s and is approximately 32,800 sq ft.

The property is let to a government tenant until October 2015 at a passing rent of €1.26m per annum. It is suitable for substantial redevelopment into third generation office space.

Meanwhile, Green has confirmed Bank of Ireland is providing €150m in financing to the investment vehicle Green and US firm Pimco used to buy the Central Park business park in south Dublin. Green and Pimco paid as much as €311m to buy the property in January.

Terms are not released but it is believed the Bank of Ireland loan was priced at 295 basis points over three-month Euribor. That is an unusually low price for a loan of this nature.

Irish Independent

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