Hibernia REIT buys Gateway site for a song
A DUBLIN-listed real estate firm has bought a site on the outskirts of Dublin for less than 10pc of what it changed hands for during the Celtic Tiger era.
Hibernia REIT said it had agreed terms to buy the former Gateway site at Newlands Cross in west Dublin for €10m.
That is a more than 93pc discount on the price it sold for in May 2006, when it was purchased for €107m by Dublin brothers Gregory and Anthony Alkens.
The Alkens had planned to develop a huge number of apartments and offices on the site and capitalise on its close proximity to the LUAS line into the city centre but planning permission never materialised.
Under the South Dublin County Council development plan, the site may be used for purposes including industrial, retail warehousing, car showrooms, transport depot and petrol stations.
The property comprises an industrial or logistics facility with what Hibernia called "potential for significant intensification".
There is 178,000 square feet of warehouse accommodation on the site, which is currently 46pc occupied and is producing an annual rental income of €517,000. The gross yield is 5.12pc.
This is Hibernia's third deal since it set up before Christmas. Last month it bought New Century House in the IFSC for around €47m.
Company chief executive Kevin Nowlan said he was "pleased" to have completed the deal.
"This is an income-producing asset with enormous development potential in the medium to long term.
"The current upgrade works being undertaken to the Naas Road will considerably enhance the attractiveness of this property," he added.