Dublin and London-listed Hibernia REIT has exchanged contracts to acquire Guild House and Commerzbank House in Dublin for €91 mln in cash from a syndicate of private investors in an off-market transaction.

Dublin and London-listed Hibernia REIT has exchanged contracts to acquire Guild House and Commerzbank House in Dublin for €91 mln in cash from a syndicate of private investors in an off-market transaction.

The price reflects a capital value of €629 per sq ft and a net initial yield of 6.6%.

Guild House and Commerzbank House are two adjoined Grade A office buildings located in the IFSC financial district of Dublin. The buildings were completed in 2000 and provide 144,250 sq ft (13,400 m2) of space arranged over five floors as well as 148 parking spaces.

Following the completion of this transaction Hibernia will have concluded nine acquisitions since listing, deploying €337 mln or 91% of the net proceeds raised in December 2013. A further €63 mln are already committed, the company added.

'We are continuing to see a very high level of transaction volumes in the Dublin office market: within this we are finding attractive opportunities that meet our selective acquisition criteria, particularly in the off-market and loan spaces,' commented Kevin Nowlan, Chief Executive Officer of investment manager WK Nowlan REIT Management.

The newly-acquired offices are fully let at average rents of €39 per sq ft on leases running to 2025 with a weighted average unexpired term to break of three years. The principal tenants are FBD Holdings, Commerz Management Services and BNY Mellon.