Hibernia's 1 Cumberland Place fully let
Hibernia Reit announced yesterday that it has completed the refurbishment of Cumberland House, Dublin 2, ahead of schedule and has let the remaining 33,000 sq ft of available space to Mobile Travel Technologies Limited (MTT).
Hibernia purchased Cumberland House in March 2015 at a total cost of €51m. Following its acquisition of the property, the company, which is headed up by Kevin Nowlan, spent a further €29m on refurbishment works.
Following expiry of the rent-free period, the building, which is being renamed 1 Cumberland Place, is set to generate passing rent of €7.1m per annum, a yield on cost of 9pc.
The weighted average unexpired lease terms (WAULT) are approximately 12 years to break and 21 years to expiry respectively.
MTT is a leading provider of mobile travel technology and a wholly-owned subsidiary of the NYSE-listed company Travelport Worldwide Limited. It will occupy the fifth and sixth floors of the building and 10 car parking spaces on 25-year leases, and will pay an initial rent of around €1.8m per annum after receiving five months rent free from lease commencement, which is scheduled for 1 November 2016. The lease for the rest of the 135,000 sq ft building, which was pre-let to Twitter, has commenced.
This lease agreement brings Hibernia Reit's total contracted annual rent roll to over €45m.
Commenting on the transaction, Hibernia's chief operations officer, Frank O'Neill, said: "We are pleased to have completed the refurbishment of this landmark building and are delighted to welcome MTT as a tenant. The refurbishment has delivered high quality, efficient office space for our tenants and will help in the regeneration of this city centre location.
"We expect 1 Cumberland Place to be one of the first office buildings in Dublin to achieve an LEED Platinum rating, the highest level under the LEED environmental certification system."
Yesterday's announcement follows Hibernia's agreement at the end of July to let the remaining 30,200 sq ft of available space in One Dockland Central, in Dublin's North Docks, to the Commission for Communications Regulation (ComReg). ComReg is on a 20-year lease, with a tenant-only break option after 11 years and is set to pay initial rent of €1.6m per annum - an average of €50 per sq ft.
ComReg joined HubSpot and Bank of New York Mellon as a tenant in the building,
Hibernia also revealed at the end of July that Analytic Partners has taken up 5,200 sq ft in the Chancery Building in Dublin 2 on a 15-year lease with an initial rent of €200,000 - an average of €37 per sq ft.