Saturday 25 June 2016

Hibernia REIT in talks to buy city centre office block

Published 25/07/2014 | 02:30

Directors of Hibernia Reit Plc, from left, Stewart Harrington, Danny Kitchen (Chairman) and Colm Barrington, pictured at the Company's AGM in the Marker Hotel in Dublin. Hibernia Reit is an Irish Property investment company, the principal activity of which is to acquire and hold investments in Irish property, primarily commercial, with a view to maximising its shareholders' returns. Photo: Laura Hutton/Photocall Ireland
Directors of Hibernia Reit Plc, from left, Stewart Harrington, Danny Kitchen (Chairman) and Colm Barrington, pictured at the Company's AGM in the Marker Hotel in Dublin. Hibernia Reit is an Irish Property investment company, the principal activity of which is to acquire and hold investments in Irish property, primarily commercial, with a view to maximising its shareholders' returns. Photo: Laura Hutton/Photocall Ireland

Hibernia REIT is in talks to buy an office block in Dublin, 
in a move that will cut the number of large vacant office buildings in the top areas of the capital to one.

In a stock exchange announcement, Hibernia confirmed it was in exclusive talks to buy Cumberland House on Fenian Street in Dublin 2.

Cumberland House is a seven-storey office building of 112,000 sq ft with "substantial refurbishment opportunities" located close to Merrion Square, said the company.

While Hibernia made clear that there was no guarantee the sale will go through, industry sources said the sale was close to completion.

Cumberland House is thought to be in good condition and could probably be occupied straight away. However, for the landlord to charge top-level rents of €40 per sq ft and up, a substantial renovation is required.

When the deal is completed, it will leave only one vacant office block of over 75,000 sq ft in Dublin 2 or 4.

That means that if a corporation is looking for a premises in that area now, there is only one option - the block at 5 Grand Canal Square.

The IDA has regularly warned that the lack of space may hurt Ireland's ability to attract investment.

Irish Independent

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