Irish office investor Hibernia REIT has exchanged contracts to buy a six-storey building in Dublin's central business district for €26.5 mln.
Irish office investor Hibernia REIT has exchanged contracts to buy a six-storey building in Dublin's central business district for €26.5 mln.
The total current rent amounts to €1.2 mln per annum, representing a net initial yield of 4.3%. Some 20% of the office space is subject to review or expiry in the next 18 months.
Marine House, in Clanwilliam Court, Dublin 2, has 3,800 m2 of space above a double basement with 81 parking spaces. The building is fully let to tenants including accountancy firm Crowe Horwath and WK Nowlan Property, with an average unexpired lease term of five years.
Kevin Nowlan, CEO of Hibernia, said: 'The building is an exciting addition to our longer term pipeline of development assets in prime locations in central Dublin, with possibilities to redevelop alone or as part of a wider redevelopment of Clanwilliam Court. With low average rents of €23 per sq ft in the building, there are opportunities in the near term to enhance the income through light refurbishment.'
Hibernia is listed on the Dublin and London stock exchanges and has a strategy of acquiring and holding commercial property in Ireland, with an emphasis on offices in central Dublin. At end-November 2015 the company had a €739 mln portfolio comprising 21 properties, with offices making up 83% of the total value.
