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Fall in take-up of office letting in 2019 - report


Hibernia REIT's CEO Kevin Nowlan

Hibernia REIT's CEO Kevin Nowlan

Hibernia REIT's CEO Kevin Nowlan

Listed landlord and developer Hibernia Reit said there was a fall in the take-up of office letting in Dublin last year when compared to 2018.

Overall the take-up for leased space in Dublin exceeded 3.3m sq. ft. in 2019, down from a record 3.9m sq. ft in 2018.

A number of transactions in the Dublin market remained outstanding at 31 December last year, with over 1.3m sq. ft. of space reserved.

In a trading update for the period 1 October to date, Hibernia Reit said the final three months of the year were “highly active,” following two relatively quiet quarters.

Vacancy rates in Dublin at the end of December 2019 were 6.4pc for Grade A space in the city centre, up from 6pc in September.

Meanwhile, prime Grade A headline rents in the centre of Dublin remained stable at in excess of €60 per sq. ft., according to Knight Frank.

The group said it has invested €2.5m in two acquisitions since September, both of which are assets adjoining properties it owns.

No disposals were made in the period.

The vacancy rate in Hibernia's in-place office portfolio remains at 12pc and is primarily across 2 Windmill Lane, Central Quay and the Forum. Hibernia said it has made good progress in lease negotiations for the majority of the space available and it expects these to start concluding shortly.

Overall lease negotiations are at an "advanced" stage on the majority of the vacant space in its office portfolio.

Kevin Nowlan, CEO of Hibernia Reit, said the letting market ended “strongly” last year, “with a pick-up in demand from tenants of all sizes, after a quieter period in the middle of the year, particularly for smaller occupiers.”

He added that 2020 “has started positively.”

At 31 December the group had net debt of €229m and cash and undrawn facilities of €166m.

Online Editors