Hibernia pays €90m for IFSC office building
Published 16/07/2014 | 02:30
HIBERNIA REIT has agreed terms to buy an office block in the centre of Dublin's financial district for €90.75m.
In a stock exchange announcement, the real estate investment trust said it will buy Guild House and Commerzbank House in the IFSC.
The deal reflects a capital value of €629 per sq ft and an initial yield of 6.6pc.
Guild House and Commerzbank House are two adjoined office buildings on Guild Street close to the Convention Centre. The buildings have a combined 144,250 sq ft of space over five floors.
The offices are fully let with average rents of €39 per sq ft on leases running to 2025 with an average unexpired term to break of three years. FBD, Commerzbank and BNY Mellon are the main tenants across the property.
Details of the sellers were not disclosed, although they are understood to be a syndicate of private investors put together by low-key investment firm Warren Private.
Hibernia boss Kevin Nowlan said he was "delighted" to have closed his firm's biggest deal to date.
"We are delighted to have agreed this acquisition which gives us ownership of two Grade A offices located in the heart of Dublin's financial district at attractive capital values," he said.
"These buildings have good running yield and their layout, size and interconnectivity offer significant near term and longer term asset management opportunities."
Hibernia REIT's shares closed up 0.9pc to €1.12 in Dublin.