Hibernia REIT PLC Acquisition (5585D)
February 01 2018 - 1:00AM
UK Regulatory
TIDMHBRN
RNS Number : 5585D
Hibernia REIT PLC
01 February 2018
Hibernia acquires South Docks office for EUR28.7m
Hibernia REIT plc ("Hibernia") announces that it has exchanged
contracts to acquire 77 Sir John Rogerson's Quay ("77 SJRQ") for
EUR28.7m.
77 SJRQ is a six storey office building of 34,400 sq. ft. with
20 basement car parking spaces which was constructed in 2004. The
building is situated towards the eastern end of Dublin's South
Docks where a number of large development projects are nearing
completion. Hibernia is acquiring the building vacant and expects
to spend EUR0.5m on improvement works: including these the purchase
price equates to a capital value of EUR850 per sq. ft. for the
office space.
Separately, Hibernia has agreed to let the entire building to a
subsidiary of International Workplace Group plc ("IWG", formerly
Regus) on a 25 year lease, with 15 years term certain. IWG will pay
initial rent of EUR1.8m (EUR50 per sq. ft.) and will receive nine
months rent free: the lease is expected to commence in mid 2018.
The net yield will be 5.8% after expiry of the rent free period,
rising to 6.3% following a fixed uplift in rent after year
five.
Kevin Nowlan, Chief Executive Officer of Hibernia, said:
"We are delighted to be acquiring 77 SJRQ and welcoming IWG as a
long-term tenant. The eastern end of the South Docks is undergoing
a transformation with several large development projects
approaching completion and occupiers such as JP Morgan and
Indeed.com joining State Street, Accenture and AirBnB in the area.
The simultaneous agreements show Hibernia's ability to drive value
through combining our asset management and deal sourcing
capabilities."
ENDS
Contacts:
Hibernia REIT plc +353 1 536 9100
Kevin Nowlan, Chief Executive 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 a Dublin-focused Real Estate Investment
Trust ("REIT"), listed on the Irish and London Stock Exchanges,
which owns and develops Irish property. All of Hibernia's portfolio
of properties is in Dublin and it specialises in city centre
offices.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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