Friday, August 22 10:06:02
Property investment group, Hibernia REIT, today said it has bought The Forum building in the IFSC, Dublin 1 from an affiliate of Atlas Capital Group for E37.8m.
The building is situated on Commons Street and comprises 47,109 sq. ft. of office accommodation constructed in 2003 over two floors above four floors of car parking with 370 spaces.
The net initial yield is 7.0pc and the price equates to a capital value of around E550 per sq. ft. for the office space.
The offices are fully let to Depfa Bank on annual rent of E40 per sq. ft. 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 E2m per annum.
The remaining 320 car parking spaces are currently utilised by Park Rite, paying E675k per annum, on a lease that has formally expired. Lease discussions are on-going with the tenant, Hibernia said.
This acquisition is Hibernia's tenth since listing: it is expected that it will complete in late 2014, following which Hibernia will have invested E374m, with a further E63m committed.
Kevin Nowlan, Chief Executive Officer of WK Nowlan REIT Management Limited, the Investment Manager, said: "We are delighted to have agreed this acquisition: The Forum is a Grade A building in a prime central Dublin location and delivers a substantial running yield. It is close to our other three office buildings in the IFSC and the parking capacity it has may in future be beneficial for potential tenants in those buildings."