Hibernia REIT PLC Hibernia sells New Century House for EUR65.3m (2263U)
July 11 2018 - 1:00AM
UK Regulatory
TIDMHBRN
RNS Number : 2263U
Hibernia REIT PLC
11 July 2018
Hibernia sells New Century House, IFSC, for EUR65.3m
Hibernia REIT plc ("Hibernia") announces that it has exchanged
contacts to sell New Century House to a fund managed by Credit
Suisse Asset Management Global Real Estate for EUR65.3m. The price
is modestly ahead of the March 2018 book value and reflects a net
initial yield of 4.0% and a capital value of EUR815 per sq. ft. for
the office accommodation. Completion is expected to occur in
September 2018.
The property is situated on Mayor Street in Dublin's IFSC and
comprises 80,000 sq. ft. of offices with further basement storage
areas and parking. It is fully let to Bank of Ireland, producing
rental income of EUR2.9m per annum (c. EUR31.50 per sq. ft. for the
office space), with 0.6 years to rent review and 5.6 years to lease
expiry.
Hibernia purchased New Century House in March 2014 for EUR47m,
the price representing a capital value of EUR585 per sq. ft. for
the office accommodation and a net initial yield of 3.9%, rising to
5.9% following the expiry of a rent abatement in October 2015. The
sale price gives Hibernia an ungeared IRR on the investment in
excess of 12%.
Richard Ball, Chief Investment Officer of Hibernia, said:
"New Century House was Hibernia's first office acquisition
following our initial public offering in late 2013. 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."
ENDS
Contacts:
Hibernia REIT plc +353 1 536 9100
Richard Ball, Chief Investment Officer
Tom Edwards-Moss, Chief Financial Officer
Murray Consultants
Doug Keatinge: +353 86 037 4163, dkeatinge@murraygroup.ie
Jill Farrelly: +353 87 738 6608, jfarrelly@murraygroup.ie
About Hibernia REIT plc
Hibernia REIT plc is an Irish Real Estate Investment Trust
("REIT"), listed on Euronext Dublin and the London Stock Exchange.
Hibernia owns and develops property and specialises in Dublin city
centre offices.
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END
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