Hibernia REIT has exchanged contracts to acquire an office building in Dublin for €28.7 mln.
The asset, 77 Sir John Rogerson’s Quay (77 SJRQ), is a six-storey office scheme of 34,400 sq ft (3,200 m2) with 20 basement car parking spaces which was constructed in 2004.
The building is situated towards the eastern end of Dublin’s South Docks where a number of large development projects are nearing completion.
Hibernia is acquiring the building vacant and expects to spend €0.5 mln on improvement works.
Separately, Hibernia has agreed to let the entire building to a subsidiary of International Workplace Group (IWG, formerly Regus) on a 25 year lease, with 15 years term certain.
IWG will pay initial rent of €1.8 mln and will receive nine months rent free: the lease is expected to commence in mid 2018. The net yield will be 5.8% after expiry of the rent free period, rising to 6.3% following a fixed uplift in rent after year five.
Kevin Nowlan, CEO of Hibernia, said: 'The eastern end of the South Docks is undergoing a transformation with several large development projects approaching completion and occupiers such as JP Morgan and Indeed.com joining State Street, Accenture and AirBnB in the area.'
