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Hibernia buy E67m Ulster Bank properties

Monday, February 17 14:27:40

Dublin-listed property investors Hibernia REIT today said that it has signed contracts to acquire a portfolio of loans secured predominantly on residential real estate assets from Ulster Bank for E67m.

These Ulster Bank assets form part of RBS Capital Resolution, Hibernia said.

The total cost of the acquisition will be approximately E70 million and the company intends to spend an estimated E20 million on development works while non-core assets will be sold.

This is the first acquisition by Hibernia since its successful flotation in December 2013 when it raised gross funds of E385 million to invest in Irish real estate assets, and the consideration 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 Portfolio 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. and development land of approximately 27 acres.

Hibernia said it intends to finish the 213 partly completed residential units at Wyckham Point and make them available for rent. The cost to complete will be approximately E20 million. The current rental income of the portfolio is approximately E1.9 million.

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.

Kevin Nowlan, Chief Executive Officer, WK Nowlan REIT Management Limited, the Investment Manager, commented: "The key assets within this portfolio are of a very high quality and are well located and give Hibernia excellent exposure to the Dublin residential sector which we believe offers strong growth potential. We are delighted to have successfully concluded an excellent investment in this category."