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Hibernia Reit pre-lets 2 Cumberland Place, says it’s too early to see coronavirus impact

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Kevin Nowlan. Photo: El Keegan

Kevin Nowlan. Photo: El Keegan

Kevin Nowlan. Photo: El Keegan

Listed landlord and developer Hibernia Reit has pre-let 24,000 sq. ft. in its 2 Cumberland Place development to 3M Digital Science Community.

The offices are located in Dublin 2.

In a trading update, Kevin Nowlan, Hibernia's chief executive, said it is “too early” to have a full picture on how the coronavirus pandemic will impact the company.

However, he said the group is in “a strong position with low leverage, substantial cash and undrawn facilities, and a diverse range of tenants”, many of which, he said, are on long-term leases.

“While we expect activity in occupational markets to slow until the current crisis abates, some lease negotiations are continuing and we are delighted to have pre-let three floors in 2 Cumberland Place to 3M,” Mr Nowlan added.

In the first three months of this year the company secured three new office lettings covering 56,000 sq. ft., adding €3.3m to its contracted rent.

The new lettings have reduced the company’s vacancy rate in the in-place office portfolio to 7pc from 12pc.

All three lettings were ahead of September 2019 net estimated rental values ("ERVs"). 

Hibernia’s annual contracted rent now exceeds €66m, with approximately 90pc coming from office properties, and the majority of the balance coming from residential.

The company said it has a strong balance sheet. It has fully unsecured debt funding with no maturities until December 2023, and cash of €21m and undrawn facilities of €133m at 31 March this year.

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