Irish REIT Hibernia is adding another Central Dublin office property to its portfolio, via the acquisition of an outstanding loan. This is the second transaction by the new Dublin and London-listed property company in a matter of days.

Irish REIT Hibernia is adding another Central Dublin office property to its portfolio, via the acquisition of an outstanding loan. This is the second transaction by the new Dublin and London-listed property company in a matter of days.

The latest deal involves The Chancery Building, The Chancery Apartments and the adjoining Napper Tandy Site on Chancery Lane, Dublin 8 for €16 mln. Days earlier, Hibernia announced it was acquiring two Grade A office buildings in Dublin, in a partially deferred transaction, in a deal valued at €60 mln.

Hibernia will acquire the latest property through the purchase of a loan which, in conjunction with an agreement with the original owners, will give the company full ownership of the underlying assets.

The Chancery Building is a 33,799 sq ft (3,000 m2) office building comprising six upper levels and a basement with 19 underground parking spaces. It is fully let to the Irish civil service, Wella UK and Gala Networks Europe with a weighted average unexpired lease term of 2 years to break and 9 years to expiry.

The rent roll is €1.1 mln per annum equating to an average passing rent of €30 per sq ft. The price paid of €16 per m2 equates to a capital value of €445 sq ft on the commercial element and a blended net initial yield of 6.8%.

The Chancery Apartments consist of four 2-bed apartments in the same building accessed via a separate entrance onto Chancery Lane. They are let on 1-year leases producing a combined current annual rent of €63,360. At the price paid of €1 mln, the net initial yield is 6.1% based on gross income.

The Napper Tandy site is a small corner site that has planning consent for a 1,300 m2 office building or a 45-suite student accommodation building.

The area is close to Dublin Castle and is a popular location for government agencies and office occupiers from a broad base of sectors.

Hibernia CEO Kevin Nowlan said: 'This acquisition is the fifth made by Hibernia since its listing and brings total funds committed to €225 mln. It again demonstrates our ability to acquire property assets at attractive prices in prime central Dublin locations.'