Hibernian REIT to buy Dublin's Observatory building for €52.25m from NAMA
Published 30/06/2014 | 07:37
PROPERTY investment fund Hibernia REIT is to buy the Observatory Building in Dublin city centre for €52.25m from NAMA.
The property, which was built by Derek Quinlan/Bernard McNamara in 2006, is set on the riverfront at Sir John Rogerson’s Quay in the South Docks area of Dublin.
The office space is 95pc let off average rents of €26 per sq ft. Of the annual headline rent of €2.2m, €1m is currently subject to a rent- free period until May 2015 and a further €0.2m is subject to a rent-free period ending February 2016
It is also immediately in front of the Hanover Building and Windmill Lane site, which Hibernia recently acquired.
The Observatory Building comprises 86,213 sq ft of office accommodation arranged over six floors accessed from Sir John Rogerson’s Quay, with 47 basement parking spaces.
In addition,there are eight partially completed two bedroom apartment units of c 1,400 sq ft each and two vacant retail units fronting onto Windmill Lane.
“Our acquisition of the Observatory Building adds another high quality, central Dublin office property with substantial reversionary potential to our portfolio," said Kevin Nowlan, chief executive officer, WK Nowlan REIT Management Limited, the investment manager.
"Its location adjacent to our existing office building and site with planning permission for 125,000 net sq ft of offices on Windmill Lane consolidates our position in this attractive and easily accessible South Docks area and will offer significant benefits in the longer term through active asset management."