Hibernia REIT PLC Flexible workspace partnership and pre-let (8154V)
February 02 2017 - 1:00AM
UK Regulatory
TIDMHBRN
RNS Number : 8154V
Hibernia REIT PLC
02 February 2017
Formation of flexible workspace partnership and pre-let
Hibernia REIT plc ("Hibernia") announces that it has formed a
partnership with a flexible workspace provider which will occupy
21,000 sq. ft. in Clanwilliam Court and separately that it has
pre-let 16,000 sq. ft. in Two Dockland Central (formerly Guild
House).
At Block 1 Clanwilliam Court, Dublin 2, Hibernia has entered a
five year partnership agreement with Iconic Offices ("Iconic") for
the establishment of a serviced office and co-working business
which will occupy 21,000 sq. ft. over three floors. This reduces
vacancy across Blocks 1, 2 & 5 Clanwilliam Court, which were
acquired by Hibernia in June 2016, to below 2%. Iconic is a leading
Dublin-based flexible workspace provider and is already a tenant of
Hibernia in SOBO Works, an 11,000 sq. ft. office on Windmill
Lane.
Under the agreement Hibernia will provide the property and
Iconic will manage the business operations, with the income
generated being shared. Hibernia will fund the majority of the
fit-out costs, estimated at EUR1m, and will receive the majority of
net income from the occupier (after amortisation of the cost of
fit-out) up to a level equating to headline rent of c. EUR45 per
sq. ft. over the five year period. Iconic will receive the majority
of any net income above this level.
At Two Dockland Central, in Dublin's North Docks, 16,000 sq. ft.
currently under refurbishment has been pre-let to HubSpot Ireland
Limited ("HubSpot"). HubSpot, a leading provider of inbound
marketing and sales software, will pay initial rent of EUR52.50 per
sq. ft. on a 19 year lease with a tenant-only break option in the
11(th) year and will receive six months rent free from lease
commencement (expected mid-2017). HubSpot already occupies 27,500
sq. ft. of office accommodation in the adjoining One Dockland
Central. Works to refurbish Two Dockland Central and all its common
areas to Grade A standard are due to complete in late 2017.
Frank O'Neill, Chief Operations Officer of Hibernia, said:
"The establishment of a partnership with Iconic Offices in
Clanwilliam Court is an exciting step for us. Co-working and
flexible workspace are becoming increasingly significant elements
of the office market and we look forward to working with the Iconic
team, whom we know well from SOBO Works, to meet this tenant
demand. In the medium term, Clanwilliam Court continues to offer
significant opportunities for repositioning, whether via
refurbishment or redevelopment.
"We are pleased to have leased a further 16,000 sq. ft. to
HubSpot to accommodate their growing business. The space will be
contiguous with HubSpot's existing accommodation in One Dockland
Central, a feature we identified would be attractive to tenants
when we underwrote the acquisition of the two buildings. The
refurbishment of Two Dockland Central is progressing well and
discussions continue with other potential occupiers."
ENDS
Contacts:
Hibernia REIT plc +353 1 536 9100
Frank O'Neill, Chief Operations Officer
Tom Edwards-Moss, Chief Financial Officer
Murray Consultants
Doug Keatinge: +353 86 037 4163,
dkeatinge@murrayconsultants.ie
Jill Farrelly: +353 87 738 6608,
jfarrelly@murrayconsultants.ie
About Hibernia REIT plc
Hibernia REIT plc is an Irish Real Estate Investment Trust
("REIT") and is listed on the Irish and London Stock Exchanges. The
principal activity of the Company is to acquire and hold
investments in Irish property (primarily commercial property) with
a view to maximising shareholder returns.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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