Hibernia sells Dublin office for €65.3m
Hibernia sells Dublin office for €65.3m – Hibernia REIT (HBRN ID) has exchanged contacts to sell New Century House in Dublin for €65.3m. The buyer is a fund managed by Credit Suisse Asset Management Global Real Estate. Completion is expected to occur in September 2018.
Hiberia report that the price is modestly ahead of the March 2018 book value. It reflects a net initial yield of 4.0% and a capital value of €815 per sq. ft. for the office accommodation.
New Century House
New Century House is situated on Mayor Street in Dublin’s International Financial Services Centre. It is made up of 80,000 sq. ft. of offices with further basement storage areas and parking. It is fully let to Bank of Ireland, producing rental income of €2.9m per annum (c. €31.50 per sq. ft. for the office space), with 0.6 years to rent review and 5.6 years to lease expiry.
Hibernia purchased New Century House in March 2014 for €47m. Therefore, the price represents a capital value of €585 per sq. ft. for the office accommodation and a net initial yield of 3.9%. This will rise to 5.9% when a rent agreement that was put in place in October 2015. The sale price gives Hibernia an ungeared IRR on the investment in excess of 12%.
HBRN ID : Hibernia sells Dublin office for €65.3m