Property investment company Hibernia Reit said on Tuesday it has gained full ownership of 1 Windmill Lane, a one acre site in Dublin’s South Docks.
Hibernia has acquired the interest of Starwood Capital Group, held by a controlled affiliate, in their 50:50 joint arrangement, the Windmill Lane Partnership.
WLP was formed in 2015 to hold and develop 1 Windmill Lane, where 11,334sq m (122,000sq ft) of offices, 650sq m (7,000sq ft) of retail and 14 homes are under construction, scheduled for completion in late 2017.
Hibernia paid Starwood €27.5 million and has assumed Starwood's 50 per cent share of the € 44.2 million non-recourse debt facility with Deutsche Bank, which is €8.8 million drawn and will be used to fund the estimated remaining capital expenditure of €28 million.
Enhanced net asset value
The acquisition means Hibernia now has full ownership of five adjacent properties in the Sobo District of Dublin’s South Docks, comprising over 34,374sq m (370,000sq ft) of office space either in place or under construction.
Richard Ball, chief investment officer of Hibernia, said: "We are delighted to gain full ownership of 1WML, which, together with 1SJRQ, will deliver over 230,000sq ft of best-in-class new office accommodation in central Dublin at a time when vacancy is at record lows. We look forward to completing this exciting project in the next 12 months and progressing discussions with potential tenants in the near term."
In a statement, Hibernia said that the price paid is “modestly ahead” of the September 2016 valuation and, together with the expected remaining costs to complete, equates to capital value of about €750 per sq ft for the office space. Hibernia expects the transaction to enhance net asset value in the near term.