Hibernia REIT has exchanged contracts to sell 77 Sir John Rogerson’s Quay for €35.5m. The price is modestly ahead of the December 2018 book value and reflects a net initial yield of 4.6% and a capital value of €1,040 per ft² for the office accommodation. Completion is expected in April 2019.
The property is situated at the junction of Sir John Rogerson’s Quay and Benson Street, towards the eastern end of Dublin’s South Docks, and comprises 34,400ft² of office accommodation and 20 parking spaces. It is fully let to International Workplace Group plc (IWG), producing a rental income of €1.8m per annum (€50 per ft² for the office space), with four years to next rent review and 14 years term certain remaining.
Hibernia intends to the return the net proceeds of the sale of €35m to shareholders and, based on currently available distributable reserves, has announced an initial on-market share buyback programme of up to €25m.
Kevin Nowlan, Chief Executive Officer, said: “We acquired 77 SJRQ in early 2018 and simultaneously agreed to let the entire building to IWG on a long lease. This, together with the improving surroundings in the eastern end of the South Docks, has resulted in a significant uplift in value during our ownership. The sale allows us to concentrate on our larger investments and our development pipeline. We intend to return the net proceeds of €35m to shareholders to maintain our progress towards our leverage target, starting with the €25m share buyback programme we have announced today.”
