Property investment firm Hibernia REIT in €67m deal
Firm will acquire portfolio from Ulster Bank including 213 partly completed residential units in Dundrum
Hibernia will complete the development of about 213 apartments at Wyckham Point, Dundrum and then make them available for rent.
Hibernia REIT is to acquire a portfolio of residential real estate loans from Ulster Bank for €67 million. The porfolio of assets, which are held by RBS Capital Resolution, include 213 partly completed residential units at Wyckham Point, Dundrum, Dublin 16.
The transaction is the first for real estate investment trust (REIT) since its flotation in December 2013, when it raised funds of € 385 million to invest in Irish real estate assets.
The total cost of the acquisition will be approximately € 70 million and Hibernia intends to spend an estimated € 20 million on development works. This will be funded by existing cash resources.Non-core assets will be sold.
The portfolio comprises 17 assets of varying sizes, all of which are located in Dublin with the exception of two assets outside Dublin. In addition to the Wyckham Point apartments, it includes 89 completed residential units in various locations in Dublin - including 16 apartments at Liberty Court, Clanbrassil Street, Dublin 8 - office/commercial space of 28,500 sq. ft. and development land of approximately 27 acres, including a 2.8 acre site on Wyckham Way, Dundrum.
In a statement, Hibernia said that it will finish the 213 partly completed residential units at Wyckham Point, at a cost of about €20 million, and make them available for rent. The current rental income of the portfolio is approximately € 1.9 million.