Hibernia REIT buys two Dublin office blocks in €60 million deal

Hibernia REIT has agreed to buy two Dublin office blocks from the Hardwick Group in a deal that values the buildings at €60 million.

The office blocks are Montague House and Hardwicke House, near Hatch Street in Dublin 2. The group said both properties benefit from strong transport links and proximity to a number of amenities.

Hibernia is to pay a sum of €18.25million initially and gain immediate operational control of the buildings. Under the terms of the contract, Hibernia will have the right to take full ownership of the buildings at any time up to mid-2016 for an incremental sum of €41.75 million.

Both properties were built in 1999 and provide 88,483 sq. ft. of prime Grade A office accommodation across five stories and 56 basement car parking spaces.

The buildings are multi-let to a range of tenants including Prudential International Assurance, Deloitte and Capita, with a weighted average unexpired lease term across the two buildings of seven years.

Of the current €2.7million annual rent roll from the properties, 12 per cent is due to be reviewed in 2016, with the rest due for review two years later.

This is the fourth acquisition by Hibernia since listing in December and will bring total funds committed to approximately €208 million.

“We are delighted to be acquiring these two excellent quality, well-let office buildings, located in the heart of Dublin’s central business district. They have significant reversionary potential at current estimated rental values and we have structured the transaction to maximise the returns we generate for shareholders, said Kevin Nowlan, chief executive of Hibernia REIT.