Hibernia Reit signs 'flexible workspace' deal
Hibernia Reit has signed a five-year deal with Iconic Offices for the establishment of a serviced office and co-working business in Dublin city centre.
Under the agreement Hibernia will provide the property at Block 1, Clanwilliam Court and flexible workspace specialists Iconic will manage the business operations. The income generated will be shared. Hibernia will fund the majority of the fit-out costs, estimated at €1m, and will receive the majority of net income from the occupier up to a level equating to headline rent of approximately €45 per sq ft over the five-year period. Iconic will receive the majority of any net income above this level.
With Iconic set to take up some 21,000 sq ft of space over three floors at Clanwilliam Court, the agreement will see the average vacancy level across Blocks 1, 2 and 5 at the complex fall to below 2pc.
Hibernia acquired Blocks 1, 2 and 5 in June of last year for €51m. The buildings' former owners - international property investors London + Regional - had been seeking €54m when they put them on the market at the end of last April.
Founded in 2013, Iconic Offices is already a tenant of Hibernia Reit at SOBO Works, an 11,000 sq ft office on Windmill Lane. With the addition of 21,000 sq ft at Clanwilliam Court, Iconic will have a total of 151,000 sq ft of space to offer across 15 buildings, equipped with state-of-the-art IT facilities to support start-ups.
In other news, Hibernia Reit announced yesterday that it has pre-let 16,000 sq ft of space at Two Dockland Central, in Dublin's North Docks, to inbound marketing and sales software providers, HubSpot Ireland, at an initial rent of €52.50 per sq ft on a 19-year lease with a tenant-only break option in the 11th year.
The company already occupies 27,500 sq ft in One Dockland Central.