Ireland's Hibernia REIT has exchanged contracts to acquire Blocks 1, 2 & 5 Clanwilliam Court in Dublin 2, for a total of €51 mln.
Blocks 1, 2 & 5 are three 1970s office buildings totalling 93,700 sq ft (8,700 m2) arranged over five to six floors above a double basement with 220 underground car parking spaces.
Following the acquisition of Marine House in March 2016 for €26.5 mln, Hibernia now owns four contiguous blocks of the seven blocks that comprise Clanwilliam Court.
Blocks 1, 2 & 5 are currently 76% let to a range of occupiers, including the Electricity Supply Board, the Irish Food Board An Bord Bia and Hines Real Estate Ireland, generating total current rent of €2.9 mln. The weighted average period to break and expiry is five years with all leases due to expire by the end of 2021.
The purchase price equates to a net initial yield of 5.0%. Once fully occupied and post-settlement of an outstanding rent review the contracted rent is expected to rise to over €4 mln per annum, equating to a yield on cost of 7.5%.
'The transaction is consistent with our strategy of focussing on prime Dublin city centre office assets with asset management or development potential,' said Kevin Nowlan, Chief Executive Officer of Hibernia.
