Irish REIT Hibernia has exchanged contracts to acquire the regional police headquarters in Dublin for €70 mln.
Irish REIT Hibernia has exchanged contracts to acquire the regional police headquarters in Dublin for €70 mln.
The Garda Siochana (police) offices at Harcourt Square, Dublin 2, is being sold by Gangkhar plc, set up in 2013 by a Starwood Capital-led consortium to acquire the €810 mln Project Aspen from Ireland's bad bank NAMA.
Starwood Capital’s consortium, believed to include Catalyst Capital and Key Capital Real Estate, took an 80% stake in the vehicle, with NAMA retaining the 20% balance. The package of 16 loans reportedly sold in 2013 for a 75.3% discount to face value, or around €200 mln, including €80 mln of equity and €120 mln of debt.
The €70 mln paid by Hibernia in an off-market transaction almost repays the previous owners in full.
Harcourt Square comprises a 1.9 acre site with 10,850 m2 of office accommodation in four blocks and parking spaces for 158 cars. The net initial yield is 6.8% and the price equates to a capital value of €50 per m2 for the office space.
The property is let to the Office of Public Works (OPW) and fully occupied by the Gardai at a passing rent of €4.9 mln per annum.
This acquisition is Hibernia’s 14th since listing and brings the REIT's total investments to €506 mln, with a further €43 mln committed, since its initial public offering in December 2013.
Kevin Nowlan, CEO of WK Nowlan REIT Management Ltd, the investment manager, said: 'We are delighted with this off-market acquisition, which gives us substantial near-term income and exciting redevelopment opportunities in the traditional office core of Dublin.'