Hibernia Reit pays €27.5m to gain full control of Windmill Lane
Irish property investment firm Hibernia Reit has spent €27.5m to buy the 50pc interest of its partner Starwood Capital in 1 Windmill Lane in Dublin's docklands.
The pair joined up as part of the Windmill Lane Partnership in 2015 to hold and develop the one acre site, where 122,000 sq. ft. of offices, 7,000 sq ft of retail and 14 residential units are under construction.
The project is slated for completion in late 2017.
Hibernia has also assumed Starwood's 50pc share of the €44.2m non-recourse debt facility with Deutsche Bank, €8.8m of which is currently drawn. The commercial real estate company expects capital expenditure on 1 Windmill Lane to reach €28m.
Hibernia said the price paid, which equates to €750 per sq ft, was "modestly ahead" of a September 2016 valuation.
The acquisition means Hibernia now has full ownership of five adjacent properties (including SOBO Works) in the SOBO District of Dublin's South Docks, comprising over 370,000 sq ft of office space either in-place or under construction.
Hibernia chief investment officer Richard Ball said: "We are delighted to gain full ownership of 1WML, which, together with 1SJRQ, will deliver over 230,000 sq ft of best in class new office accommodation in central Dublin at a time when vacancy is at record lows."