Hibernia REIT plc has announced that it has exercised its option to take direct ownership of Hardwicke House and Montague House, Dublin 2, for a net payment of €41.8m excluding costs. Hibernia acquired the buildings in May 2014 via secured loans for €18.2m, with an option to take full ownership at any time up to mid-2016: the exercise of the option brings the total consideration paid to €60m excluding costs.
The buildings combined total lettable space is approx 88,500ft² (8,222m²) and is currently let to a range of tenants inclduing Prudential, Deloitte and Capita. The passing rent is €2.7m per annum with over 90% of this subject to rent review by the end of 2018.
Kevin Nowlan, chief executive officer of Hibernia, said: “We are pleased to have taken full ownership of Hardwicke House and Montague House at a total capital cost of €725 per square foot, well below current market value. With average rents of €30 per square foot and over 90% of the rent roll subject to review by the end of 2018, these buildings fit firmly into our reversionary “in-place” portfolio strategy.
