UK Markets close in 2 hrs 37 mins

Hibernia sells One and Two Dockland Central for €152.3m

  • Oops!
    Something went wrong.
    Please try again later.
·2-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Hibernia REIT plc (HBRN)
06-Oct-2021 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


Hibernia sells One and Two Dockland Central for €152.3m 


Hibernia REIT plc ("Hibernia") announces the exchange of contracts and simultaneous completion of the sale of One and Two Dockland Central (the "Property") to Commerz Real AG for its open-ended real estate fund, hausInvest, for €152.3m.  The price is marginally ahead of the March 2021 book value and reflects a net initial yield of circa 4.75% and a capital value of €1,032 per sq. ft. for the office accommodation.  

The Property was constructed in 2000 and is situated on Guild Street in Dublin's North Docks.  It consists of 147,500 sq. ft. of office accommodation across two adjoining blocks with parking spaces for 144 cars and 167 bikes.  It is fully let to a range of occupiers, primarily from the technology, banking & capital markets and state agency sectors, with contracted rental income of €8.0m per annum (average office rent of €51 per sq. ft.), an average of two years to next rent review and more than seven years term certain remaining.             

Hibernia purchased One and Two Dockland Central in July 2014 for €90.8m, equating to a net initial yield of 6.6% and a capital value of €629 per sq. ft. for the office space.  A further €21m was invested in refurbishing and expanding the office accommodation and facilities and the Property was re-let.  The sale price gives Hibernia an ungeared IRR on its investment in excess of 12%.  The net sales proceeds are expected to be reinvested in Hibernia's substantial near term development pipeline.

Edwina Governey, Chief Investment Officer of Hibernia, said:

"During our ownership, One and Two Dockland Central has been a good example of the type of active asset management in which we specialise.  Having acquired the Property in 2014, we negotiated lease surrenders from the main tenants, upgraded and expanded the lettable area before re-letting it to a mix of high-quality occupiers, unlocking significant value for our shareholders. The sale will enable us to recycle capital into the delivery of our Clanwilliam Quarter and Harcourt Square office clusters."

 

ENDS

 

Contacts:

Hibernia REIT plc +353 1 536 9100

Edwina Governey, Chief Investment Officer

Tom Edwards-Moss, Chief Financial Officer

 

Murray Consultants

Doug Keatinge: +353 86 037 4163, dkeatinge@murraygroup.ie

Andrew Smith: +353 83 076 5717, asmith@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.

 


ISIN:

IE00BGHQ1986

Category Code:

MSCM

TIDM:

HBRN

LEI Code:

635400MHRA4QVVFTON18

Sequence No.:

123651

EQS News ID:

1238532


 

End of Announcement

EQS News Service

show this
show this
Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting