Hibernia to acquire The Forum in Dublin’s IFSC for €37.8 mln (UK)

Hibernia REIT plc (Hibernia) announces that it has exchanged contracts with an affiliate of Atlas Capital Group LLC to acquire The Forum building in the IFSC, Dublin 1, for a price of €37.8 mln in an off-market transaction.
The building is situated on Commons Street and comprises 47,109 ft² (approx. 4,376 m²) of office accommodation constructed in 2003 over two floors above four floors of car parking with 370 spaces. The net initial yield is 7.0% and the price equates to a capital value of c. €550 per ft² for the office space.
The offices are fully let to Depfa Bank on annual rent of €40 per ft² on leases which expire in 2029, with options to break in 2019. The total passing rent from the offices, together with 50 parking spaces also let to Depfa, is €2 mln per annum.
The remaining 320 car parking spaces are currently utilised by Park Rite, paying €675k per annum, on a lease that has formally expired. Lease discussions are on-going with the tenant.
This acquisition is Hibernia’s tenth since listing: it is expected that it will complete in late 2014, following which Hibernia will have invested €374 mln, with a further €63 mln committed.
Kevin Nowlan, Chief Executive Officer of WK Nowlan REIT Management Limited, the Investment Manager, said: “We are delighted to have agreed this acquisition: The Forum is a Grade A building in a prime central Dublin location and delivers a substantial running yield. It is close to our other three office buildings in the IFSC and the parking capacity it has may in future be beneficial for potential tenants in those buildings.”
Source: Murray Consultants