Irish property firm Hibernia REIT has exchanged contracts with Atlas Capital Group to acquire The Forum building in Dublin in an off-market deal worth €38 mln.

Irish property firm Hibernia REIT has exchanged contracts with Atlas Capital Group to acquire The Forum building in Dublin in an off-market deal worth €38 mln.

The building is situated on Commons Street and comprises 47,109 sq ft (4,400 m2) of office accommodation constructed in 2003 over two floors above four floors of car parking with 370 spaces.

The deal reflects a net initial yield of 7.0%.

The offices are fully let to Depfa Bank on leases which expire in 2029, with options to break in 2019. The total passing rent from the offices, together with 50 parking spaces also let to Depfa, is €2 mln per annum.

The remaining 320 car parking spaces are currently used by Park Rite, paying €675,000 per annum, on a lease that has formally expired. Lease discussions are ongoing with the tenant.

Hibernia REIT listed on the Irish and London Stock Exchanges late last year. Since going public it has completed 10 acquisitions totalling €374 mln, with a further €63 mln committed.

The latest purchase is expected to complete in late 2014.