Monday 17 December 2018

Hibernia REIT sells iconic Dublin building for €65.3m

Hibernia Reit chief executive Kevin Nowlan. Photo: El Keegan Photography
Hibernia Reit chief executive Kevin Nowlan. Photo: El Keegan Photography
Ellie Donnelly

Ellie Donnelly

Listed landlord and developer Hibernia Reit has sold the New Century House building in Dublin to a fund managed by Credit Suisse for €65.3m.

Hibernia purchased New Century House in March 2014 for €47m.

The price for the iconic Dublin building is modestly ahead of the March 2018 book value, and reflects a net initial yield of 4pc and a capital value of €815 per sq. ft. for the office accommodation. 

Completion of the deal is expected to occur in September 2018.

Situated on Mayor Street in Dublin’s IFSC and comprising 80,000 sq. ft. of offices with further basement storage areas and parking, the building is currently fully let to Bank of Ireland, producing rental income of €2.9m per year, with 0.6 years till rent review and 5.6 years to lease expiry.

"New Century House was Hibernia’s first office acquisition following our initial public offering in late 2013," Richard Ball, chief investment officer of Hibernia, said.

"Since then the building has increased in value substantially, helped by the strong recovery in the Irish property market and by demand for prime office assets in Dublin’s city centre.  The sale continues our recycling of capital into new projects."

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