Tuesday 22 August 2017

Hibernia wins race for One Earlsfort Terrace office block

No. 1 Earlsford Terrace
No. 1 Earlsford Terrace
Peter Flanagan

Peter Flanagan

Property firm Hibernia Reit has completed a deal to buy a Dublin office block.

Hibernia is paying €19.2m - €3m above the guide price - for the block at One Earlsfort Terrace close to St Stephen's Green.

In a statement, the company said the property is made up of 21,700 sq ft of office space across five floors plus basement and 19 underground car parking spaces. The building is part of the mixed use Earlsfort Centre. The building has planning permission from 2011 for two additional floors which increase the property's capacity by almost a third.

One Earlsfort Terrace is leased by the law firm Eversheds to 2026, with upward only rent reviews in September 2016 and 2021. The current rent equates to about €26 per sq ft, however the new landlord and tenant have agreed the rent will go up to €45 per sq ft this September.

The purchase price represents a capital value of €880 per sq ft and the yield on cost following the rent review will be 5.3pc.

Knight Frank's Adrian Trueick brokered the sale, Hibernia shares closed slightly higher at €1.26.

Irish Independent

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