Hibernia acquires central Dublin office property

Hibernia REIT (“Hibernia” or “the Company”) announces the acquisition of The Chancery Building, The Chancery Apartments and the adjoining Napper Tandy Site on Chancery Lane, Dublin 8 for €16m. Hibernia will acquire the property through the purchase of a loan which, in conjunction with an agreement with the original owners, will give the Company full ownership of the underlying assets.

The Chancery Building is a 33,799 sq. ft. office building comprising six stories over basement with 19 underground parking spaces. It is fully let to the Irish civil service, Wella UK Ltd and Gala Networks Europe Ltd with a weighted average unexpired lease term of 2 years to break and 9 years to expiry. The rent roll is €1.1m per annum equating to an average passing rent of €30 per sq. ft. The price paid of €16 m equates to a capital value of €445 sq. ft. on the commercial element and a blended net initial yield of 6.8%.

The Chancery Apartments consist of four 2-bed apartments in the same building accessed via a separate entrance onto Chancery Lane. They are let on 1 year leases producing a combined current annual rent of €63,360. At the price paid of €1.0m, the net initial yield is 6.1% based on gross income.