Hibernia REIT continues spending spree
HIBERNIA REIT continued its spending spree on Irish commercial property yesterday as it reported its first set of interim results.
The real estate investment trust backed by WK Nowlan agreed terms to buy the Chancery Building, pictured, the Chancery Apartments and the adjoining Napper Tandy Site on Chancery Lane, Dublin 8, for €16m.
This is the second acquisition by Hibernia in a matter of days. Last Friday the firm said it had signed terms to take on two buildings in Dublin 2 for €60m. Hibernia is buying the loan held against the properties but will take full control of the assets.
The Chancery Building is a 33,799 sq ft six-storey office block. It is fully let to the civil service, Wella UK Ltd and Gala Networks Europe Ltd.
Those tenants help supply a rent roll of €1.1m per annum equating to an average passing rent of €30 per sq ft.
The apartments, meanwhile, consist of four two-bed apartments in the same building. They are let on one-year leases producing a combined current annual rent of €63,360.
The Napper Tandy site is a corner site of half an acre. It has planning consent for a 13,900 sq ft office building or a 45 "suite" student accommodation building.
The purchase came as Hibernia reported its first set of half-year results. The company now has net assets of €371m and has invested about €223m over five properties. The firm posted a net loss of €850,000, but that was due to the costs incurred with setting up the business.
Company boss Kevin Nowlan said he was "delighted" with the progress REIT has made.
"Looking ahead, we expect continued growth in rents and capital values in our target markets," he said.
Shares in the firm were unchanged at €1.05.