20th May 2014 13:14
LONDON (Alliance News) - Hibernia REIT PLC, which raised EUR385 million through an initial public offering in December, Tuesday reported a loss for the period since its incorporation as it lamented the "intense" competition for property in Ireland.
The company, which invests mainly in commercial space in the greater Dublin area, posted a pretax loss of EUR846,000 for the period August 13, 2013 to March 31, while revenue totalled EUR99,000.
Hibernia blamed its loss on the short period of operation since its flotation and the very early stage at which it is assembling its portfolio. In addition, as the group had not completed the acquisition of any investment property by the year-end, no rental income was recognised.
However, Hibernia has since been active in the market. In March, the company announced the acquisition of New Century House, an office building in Dublin, in a deal worth EUR47 million, and Tuesday said it has acquired an office block in Dublin for EUR16 million.
Hibernia said it will acquire The Chancery Building, The Chancery Apartments and the adjoining Napper Tandy Site On Chancery Lane, Dublin, through the purchase of a loan which, in conjunction with an agreement with the original owners, will give the company full ownership of the underlying assets.
"This acquisition is the fifth made by Hibernia since its listing and brings total funds committed to approximately EUR225 million, Chief Executive Kevin Nolan said in a statement. "It again demonstrates our ability to acquire property assets at attractive prices in prime central Dublin locations."
Hibernia did not name the seller.
The company said the upturn in the Irish property market which it predicted prior to its flotation progressed more quickly than anticipated. Hibernia said the competition to acquire high quality assets has been "intense".
Nonetheless, the company remained upbeat and said it looks forward with a high degree of optimism to its first full year of active operation.
It said it will continue to purse a number of investment opportunities with a particular focus on prime office accommodation.
"We are confident of both the adequacy of the supply of investment opportunities and our ability to secure sufficient suitable properties to enable us to continue the momentum in the assembly of Hibernia's portfolio which we have demonstrated since January," Hibernia REIT said.
Hibernia REIT shares quoted flat at EUR1.04 Tuesday afternoon.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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