Hibernia REIT announced the acquisition of The Chancery Building, The Chancery Apartments and the adjoining Napper Tandy Site on Chancery Lane, Dublin 8 for € 16 million. 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 ft² (approx. 3,140 m²). 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 €1.1 million per annum equating to an average passing rent of €30 per ft². The price paid of €16 million equates to a capital value of €445/ft² 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 €1.0 million, the net initial yield is 6.1% based on gross income.
The Napper Tandy site is a small 0.05 acre corner site. It currently has planning consent for a c. 13,900 ft² NIA office building or a 45 ‘suite’ student accommodation building.
The area is close to Dublin Castle and is a popular location for government agencies and office occupiers from a broad base of sectors.
Kevin Nowlan, CEO, said: “This acquisition is the fifth made by Hibernia since its listing and brings total funds committed to approximately €225m. It again demonstrates our ability to acquire property assets at attractive prices in prime central Dublin locations.”