17 February 2014
€67m Loan Portfolio Acquisition
Hibernia REIT plc ("Hibernia" or "the Company") announces that it has signed contracts to acquire a portfolio of loans secured predominantly on residential real estate assets ("the Portfolio") from Ulster Bank for €67 million (net of acquisition). These Ulster Bank assets form part of RBS Capital Resolution.
The total cost of the acquisition will be approximately €70 million and the company intends to spend an estimated €20 million on development works. Non-core assets will be sold. This is the first acquisition by Hibernia since its successful flotation in December 2013 when it raised gross funds of €385million to invest in Irish real estate assets, and the consideration will be funded by existing cash resources.
The Portfolio comprises 17 assets of varying sizes, all of which are located in Dublin with the exception of two assets outside Dublin, neither of which are material. The Portfolio is predominantly residential with the largest asset consisting of 213 partly completed residential units at Wyckham Point, Dundrum, Dublin 16. There are also 89 completed residential units in various locations in Dublin, office/commercial space of 28,500 sq. ft. and development land of approximately 27 acres. The Company intends to finish the 213 partly completed residential units at Wyckham Point and make them available for rent. The cost to complete will be approximately €20 million.The current rental income of the portfolio is approximately €1.9 million.