Tuesday, July 22 10:07:05
In an interim trading statement this morning, Hibernia REIT said it has completed eight acquisitions totalling E267m so far, mainly in the central Dublin office sector.
Hibernia's property portfolio now comprises: 74pc central Dublin offices, 2pc central Dublin office development land, 21pc Dublin residential and 3pc Dublin industrial / logistics and has a net initial yield of 4.1pc (4.7pc post rent frees and abatements).
Management said it believes the portfolio has strong potential for increases in rental rates in future. The office space is over 99pc occupied on weighted average contracted rents of E33psf., well below current estimated rental values for prime central Dublin offices of E40-45psf., with rental values projected to rise further.
"Furthermore the portfolio has near term development opportunities from the completion of the 213 residential units at Wyckham Point, and in the medium term, the Windmill Lane and Gateway sites," the statement said.
Following completion of the Guild House and Commerzbank House acquisition (announced on 15 July 2014) E336m has been invested since the IPO in December 2013 (over 90pc of net proceeds raised), with a further E63m committed. "The Company continues to consider all available funding options, including debt, equity and joint ventures and in the first instance is seeking to put in place debt on its existing equity base."
Kevin Nowlan, Chief Executive Officer, WK Nowlan REIT Management Limited, the Investment Manager, said: "We are delighted with the progress we have made since our financial year end in March. We have now invested over 90pc of the funds raised at IPO in a portfolio consisting primarily of central Dublin offices with significant reversionary and value-add potential. "We continue to see a very high level of transaction volumes in the Dublin office market: within this we are finding attractive acquisitions that meet our selection criteria, particularly in the off-market and loan spaces. We welcome the recent statement by the Minister for Finance regarding the acceleration of the National Asset Management Agency's disposal programme which we believe will further increase the supply of available loan and property portfolios."
For more visit: www.businessworld.ie