Hibernia REIT has announced that it has exchanged contracts to acquire Central Quay, a modern office building located between Sir John Rogerson’s Quay and Hanover Quay in the South Docks area of Dublin, for €51.3m. Central Quay (pictured), was completed in 2007 and is a 57,700 square foot office building, arranged over six floors, with 26 car parking spaces. It is currently 88% occupied and let to three tenants (AWAS Aviation Acquisitions Ltd, Indeed Ireland Operations Ltd, Invesco Global Asset Management Ltd), with weighted average periods to rent review and break of two and four years, respectively, and an average unexpired lease term of 10 years. According to Hibernia, the contracted rent is €2.5m (€47 per square foot), which represents a net initial yield of 4.5%.They say that, once fully occupied and following the re-letting of the third floor, where the current lease expires in September 2016, the yield on cost is expected to exceed 5.5%. They expect to be able to exceed 5.5% within the next 12 months and above 6% in due course. The purchase price equates to a capital value of €890 per square foot for the office space.
Hibernia REIT to acquire Central Quay, in Dublin’s South Docks, for €51.3m : HBRN