13th Dec 2016 08:12
LONDON (Alliance News) - Hibernia REIT PLC on Tuesday said it has gained full ownership of the Windermill Lane development in Dublin through purchasing its joint venture partner Starwood Capital Group's stake in the project.
Hibernia formed a 50:50 joint venture with Starwood Capital in 2015 to hold and develop 1 Windermill Lane, a one-acre site in the Irish capital where 122,000 square feet of offices, 7,000 square feet of retail and 14 residential units are currently under construction. Completion of the project is expected in late 2017.
On Tuesday, Hibernia said it paid EUR27.5 million for Starwood's interest in the project and has assumed Starwood's 50% share of the EUR44.2 million non-recourse debt facility with Deutsche Bank AG. The facility is currently EUR8.8 million drawn and will be used to fund the estimated remaining capital expenditure of EUR28.0 million.
Hibernia said the price paid is "modestly ahead" of the September 2016 valuation and, together with the expected remaining costs to complete, equates to capital value of around EUR750 per square foot for the office space. Hibernia said it expects the transaction to enhance net asset value in the near term.
The acquisition means Hibernia now has full ownership of five adjacent properties in the area, comprising over 370,000 square feet of office space either in place or under construction.
"We are delighted to gain full ownership of 1 Windermill Lane, which, together with 1 Sir John Rogerson?s Quay, will deliver over 230,000 square feet of best in class new office accommodation in central Dublin at a time when vacancy is at record lows," said Chief Investment Officer Richard Ball.
Shares in Hibernia were up 2.1% at EUR1.22 on Tuesday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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