Tuesday, 15 July 2014
Hibernia acquires Guild House and Commerzbank House in Dublin’s IFSC for €90.75 million (IE)
Hibernia REIT plc announces it has exchanged contracts to acquire Guild House and Commerzbank House for €90.75 million in cash from a syndicate of private investors in an off-market transaction. The price reflects a capital value of €629 per ft² and a net initial yield of 6.6%.
Guild House and Commerzbank House are two adjoined Grade A office buildings located in the IFSC, Dublin. The buildings were completed in 2000 and have similar floor layouts and a combined 144,250 ft² (approx. 13,378 m²) of space arranged over 5 floors.
The offices are fully let off average rents of €39 per ft² on leases running to 2025 with a weighted average unexpired term to break of three years. The principal tenants are FBD Holdings Ltd, Commerz Management Services and BNY Mellon.
Following the completion of this transaction Hibernia will have concluded nine acquisitions since listing, deploying €337 million, 91% of the net proceeds raised in December 2013, with a further €63 million committed.
Kevin Nowlan, Chief Executive Officer, WK Nowlan REIT Management Limited, the Investment Manager, said: “We are delighted to have agreed this acquisition which gives us ownership of two Grade A offices located in the heart of Dublin’s financial district at attractive capital values. These buildings have good running yield and their layout, size and interconnectivity offer significant near term and longer term asset management opportunities.
“We are continuing to see a very high level of transaction volumes in the Dublin office market: within this we are finding attractive opportunities that meet our selective acquisition criteria, particularly in the off-market and loan space.”
Source: Murray Consultants Limited