Tuesday, 10 February 2015
Hibernia to acquire Harcourt Square in Dublin 2 for €70 mln (IE)
Hibernia REIT plc announces that it has exchanged contracts with Gangkhar plc to acquire the Garda Siochana (police) regional headquarters at Harcourt Square, Dublin 2, for €70 mln in an off-market transaction.
Harcourt Square comprises a 7,689 m² site with 10,856 m² of office accommodation in four blocks and parking spaces for 158 cars at the junction of Harcourt Street and Charlotte Way, a short distance from St. Stephen’s Green in the center of Dublin. It benefits from excellent public transport links, with immediate proximity to the Harcourt Green Line Luas (tram) stop. The site has potential for redevelopment at significantly increased density.
The property is let to the Office of Public Works (OPW) and fully occupied by the Gardai at a passing rent of €4.9 mln per annum. The lease on Block 1 expired in late 2014 and the leases on Blocks 2-4 expire during 2016. The OPW has applied for a court lease renewal on Block 1 and discussions are ongoing regarding possible lease extensions for the other blocks.
This acquisition is Hibernia’s fourteenth since listing: once completed Hibernia will have invested €506 mln, with a further €43 mln committed, since its initial public offering in December 2013.
Kevin Nowlan, Chief Executive Officer of WK Nowlan REIT Management Limited, the Investment Manager, said: “We are delighted with this off-market acquisition which gives us substantial near term income and exciting redevelopment opportunities in the traditional office core of Dublin. The completion of the Luas Cross City project in 2017, linking the Green line to the Red line and the city’s main railway stations, will further enhance the area’s public transport links.
We expect to submit a planning application shortly and look forward to working closely with Dublin City Council to deliver attractive new Grade A office space in the city center in future."
Source: Murray Consultants