Hibernia to receive €8.8m in Guild House leasehold deal
Shares in Hibernia REIT rose marginally to €1.25 on Wednesday after the company said it had agreed terms with FBD Holdings for the early surrender of FBD's leasehold interest in Guild House in the IFSC, for a cash payment to Hibernia of €8.8m.
In a statement, Hibernia said FBD holds a full repairing and insuring lease for the entire 73,000 sq ft of Guild House at an annual rent of €2.9m. This lease expires at the end of March 2025, with a break option at the end of March 2017. FBD is not in occupation and has sub-let the entire building to a number of sub-tenants. All the sub-leases expire by Q1 2017, other than that of BNY Mellon which occupies the first floor on a lease running to March 2025.
The surrender payment of €8.8m includes a break penalty equal to one year's rent, €2.4m to cover the expected shortfall between the rents Hibernia will receive from the sub-tenants to the date of the break option in March 2017 and what it would have received from FBD, and a sum for dilapidations.
Hibernia bought Guild House for €90.75m in January 2014.
Guild House and Commerzbank House are two adjoined office buildings on Guild Street near to the Convention Centre.