Sunday 18 August 2019

Hibernia takes over 1 Windmill Lane

Michael Cogley

Irish property investment firm Hibernia Reit has spent €27.5m to buy the 50pc interest of its partner Starwood Capital in 1 Windmill Lane in Dublin's Docklands.

The pair joined up as part of the Windmill Lane Partnership in 2015 to hold and develop the one-acre site, where 122,000 sq ft of offices, 7,000 sq ft of retail and 14 residential units are being built. The project is due to be finished in late 2017.

Hibernia has also assumed Starwood's 50pc share of the €44.2m non-recourse debt facility with Deutsche Bank, €8.8m of which is currently drawn.

It expects capital expenditure on 1 Windmill Lane to reach €28m. Hibernia said the price paid - which equates to €750 per sq ft - was "modestly ahead" of a September 2016 valuation.

The acquisition means Hibernia now has full ownership of five adjacent properties in the SOBO District of Dublin's South Docks. "We are delighted to gain full ownership of 1 Windmill Lane, which, together with 1SJRQ, will deliver over 230,000 sq ft of best-in-class new office accommodation in central Dublin at a time when vacancy is at record lows," said Hibernia chief investment officer Richard Ball.

The news comes after Hibernia fully leased its recently refurbished Cumberland House.

The firm spent €51m on the Dublin premises. Following its acquisition the company spent a further €29m on refurbishment works, leasing out the remaining 33,000 sq ft to Mobile Travel Technologies Ltd.

Meanwhile, a 26-bedroom Georgian guesthouse in Dublin city centre has been sold to international hotel group, Unlisted Collection, for over €7m - the equivalent of €269,000 a room.

Trinity Lodge on South Frederick Street attracted numerous bids from domestic and international hoteliers according to Dan O'Connor, senior vice-president with JLL Hotels & Hospitality.

Mr O'Connor said it highlighted "a growing trend of Asian hotel investor interest in the Dublin hotel market".

Irish Independent

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