Business

Wednesday 18 October 2017

Hibernia REIT in €60m deal for two Dublin office blocks

Minister for Finance Michael Noonan T.D. with Kevin Nolan, CEO, Hibernia REIT and Deirdre Somers, Chief Executive of the Irish Stock Exchange, pictured at the launch of Hibernia REIT admission to trading in the Irish Stock Exchange in December
Minister for Finance Michael Noonan T.D. with Kevin Nolan, CEO, Hibernia REIT and Deirdre Somers, Chief Executive of the Irish Stock Exchange, pictured at the launch of Hibernia REIT admission to trading in the Irish Stock Exchange in December
Louise Kelly

Louise Kelly

Hibernia REIT have revealed plans to acquire two Dublin properties from Hardwicke Group in a €60m purchase agreement.

Montague House and Hardwicke House in Dublin 2 are the two Grade A office blocks involved in the partially deferred transaction which will allow Hibernia to secure the deal with an initial €18.25m.

It can then take full ownership of the buildings at any time up to until mid 2016 for an incremental sum of €41.75m.

Under current Irish REIT rules, the firm said that it is likely to take full ownership of the buildings in December 2015.

Both properties were built in 1999 and benefit from “strong transport links and proximity to excellent amenities”, according to a statement from Hibernia.

They are currently let to a range of “high quality tenants” including Prudential International Assurance, Deloitte and  Capita

Sinces its listing last December, this will be the fourth acquisition by Hibernia and will bring total committed funds to approximately €208m.

CEO Kevin Nowlan of WK Nowlan REIT Management Limited, the Investment Manager, said that he is “delighted” to be acquiring the two Dublin office buildings

“They have significant reversionary potential at current estimated rental values and we have structured the transaction to maximise the returns we generate for shareholders. The expected completion in 2017 of the Luas Green line extension will

further enhance the area’s public transport connections and the recent commitment of KPMG and law firm Arthur Cox to the area is a testament to its enduring appeal to top professional firms,” he said.

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