Tuesday 12 November 2019

Less than 3pc of Hibernia Reit offices vacant as strong leasing activity in Dublin continues

Hibernia Reit chief executive Kevin Nowlan
Hibernia Reit chief executive Kevin Nowlan
Ellie Donnelly

Ellie Donnelly

Less than 3pc of Hibernia Reit’s office portfolio is vacant, with various parties interested in the majority of the remaining vacant space, the real estate investment trust has said in a statement ahead of its AGM.

The lack of vacant office space comes as leasing activity remained strong in the three months to 30 June, the company said.

The real estate company also confirmed that it expected to complete its 1 Windmill Lane in Dublin 2 next month.

Other prominent  developments including 2 Dockland Central, Dublin 1, and 1 Sir John Rogerson’s Quay, Dublin 2, remain on schedule for completion in late 2017 and mid-2018, respectively, and in both cases discussions continue with potential tenants, Hibernia said.

Read more: Exclusive: Sneak peek inside the new Iconic Offices - where bespoke luxury meets co-working

Development of the Hanover Building is due to commence shortly and is scheduled for completion in late 2018.

Office leasing activity in the three months ended June 2017 was exceptionally high at over 1.0m sq. ft., bringing take-up for the first half of 2017 to over 1.6m sq. ft. and reducing Dublin office vacancy rates to 6.5pc overall and to 2pc for Grade A space in Dublin 2 and Dublin 4.

Hibernia confirmed in their statement that there was a further 1.0m sq. ft. of office accommodation reserved as at 30 June 2017.

"The quarter ended June 2017 saw a large amount of office leasing activity in Dublin, bringing take-up for the first half of the year to more than 1.6m sq. ft., and we are seeing good levels of tenant interest for the available space within our portfolio," Kevin Nowlan, CEO of Hibernia, said.

Read more: Hibernia Reit chief predicts office rent growth will slow

The flexible workspace arrangement with Iconic Offices in Clanwilliam Court continues to perform well, the company said, with over 85pc of the workstations and over 70pc of the available co-working memberships contracted as at the end of June 2017, ahead of budgeted performance.

Balance sheet

At 30 June 2017 the company had net debt of €167m and cash and undrawn facilities of €277m.

Net of committed development spend, anticipated repayment of the 1Windmill Lane loan facility and the upcoming final dividend payment, cash and undrawn facilities totalled €140m.

"With an exciting pipeline of developments, a well-capitalised balance sheet and a talented team we remain optimistic for the future," Mr Nowlan said.

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