2nd Mar 2015 08:38
LONDON (Alliance News) - Hibernia REIT PLC Monday said it has agreed to acquire Cumberland House, Dublin 2, from Morretino Ltd for EUR49 million.
In a statement, the Irish real estate investment trust said that a EUR38 million short-term secured loan it provided to Morretino in August last year is being repaid along with EUR1 million of accrued interest,
Cumberland House, a seven-storey office building, is largely vacant, according to Hibernia.
The company said it is in talks with a "number of prospective tenants" over potential short term lettings.
The price paid for the building is equivalent to a capital value of about EUR360 per square foot for the existing office space.
"The property has significant redevelopment potential," Hibernia said, "there is existing planning permission to replace the current building with up to 250,000 net square feet of new office accommodation. Alternatively, the existing building could be refurbished and extended."
"Cumberland House is an important addition to our central Dublin office portfolio with exciting asset management and redevelopment opportunities and we look forward to working with potential occupiers on plans for it," Kevin Nowlan, the chief executive of Hibernia investment manager WK Nowlan REIT Management Ltd, said in a statement.
Hibernia shares were up 1.3% at EUR1.21 on Monday shortly after the market open.
By Samuel Agini; [email protected]; @samuelagini
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