Hibernia completes €60m acquisition of Hardwicke House and Montague House
Published 22/01/2016 | 07:35
Hibernia REIT, an Irish property investment firm, has completed the acquisition of D2 properties, Hardwicke House and Montague House.
The firm initially acquired an interest in the properties by way of secured loans of €18.2m in May 2014 with an option to take full ownership by mid-2016.
This morning, Hibernia announced its decision to exercise the option, bringing the total cost of the acquisition up to €60m, adding an extra €41.8m to its original secured loans.
The buildings, which have a combined square footage of 88,500, are currently let to a range of tenants including Prudential, Deloitte, and Capita.
The passing annual rent of the property is €2.7m, which is due for review by the end of 2018.
Speaking about the acqusition of the properties, chief executive of Hibernia, Kevin Nowlan said: “We are pleased to have taken full ownership of Hardwicke House and Montague House at a total capital cost of €725 per square foot, well below current market value. With average rents of €30 per square foot and over 90pc of the rent roll subject to review by the end of 2018, these buildings fit firmly into our reversionary “in-place” portfolio strategy.
“With our significant development programmes at Windmill Lane and 1-6 Sir John Rogerson’s Quay, we are excited to be gaining vacant possession of the office accommodation in the adjoining Hanover Building in December 2016. We will take some time to assess our options to maximise the value of the asset.”
The company also announced this morning that it is considering options on a separate building, currently occupied by Bank of New York Mellon (BNY).
BNY served notice on to exercise its break options regarding its leasehold interests in the Hanover Building in Dublin 2.