Hibernia REIT has signed contracts to acquire a portfolio of loans secured predominantly on residential real estate assets from Ireland's Ulster Bank for €67 mln (net of acquisition costs).
Hibernia REIT has signed contracts to acquire a portfolio of loans secured predominantly on residential real estate assets from Ireland's Ulster Bank for €67 mln (net of acquisition costs).
These Ulster Bank assets form part of RBS Capital Resolution.
The total cost of the acquisition will be around €70 mln and the company intends to spend an estimated €20 mln on development works. Non-core assets will be sold.
This is the first acquisition by Hibernia since its flotation in December 2013 when it raised gross funds of €385 mln to invest in Irish real estate assets. The takeover will be funded by existing cash resources.
The portfolio comprises 17 assets of varying sizes, all of which are located in Dublin with the exception of two assets outside Dublin, neither of which are material. The package is predominantly residential with the largest asset consisting of 213 partly completed residential units at Wyckham Point, Dundrum, Dublin 16.
There are also 89 completed residential units in various locations in Dublin, office/commercial space of 28,500 sq ft (2,647 m2) and development land of 27 acres (10.9 hectares). The assets generate net rental income of €1.9 mln.
Eversheds advised Hibernia REIT plc on legal affairs, Deloitte advised on taxation matters. LeBruin Private advised the current owners of the assets on the completion of this transaction.
