11th Mar 2016 14:53
LONDON (Alliance News) - Hibernia REIT PLC Friday said it has acquired One Earlsfort Terrace in Dublin for EUR19.2 million.
The building is 21,700 square foot of office accommodation over five floors, and 19 underground car parking spaces, located a short distance from the centre of Dublin. Hibernia said there is existing planning permission for two additional floors, which would add around 6,000 square feet of net lettable area.
The building is currently occupied by international law firm Eversheds LLP and is on a lease until 2026, with scheduled rent reviews in September 201 and 2021. Hibernia has agreed with Eversheds that rent will rise to EUR1.0 million per year at the next rent review. It has a current passing rent of EUR630,000 per year.
The purchase price represents a capital value of EUR880 per square foot, and the yield on cost following this rent review will be 5.3%.
"We are delighted to have acquired One Earlsfort Terrace. This is a well-situated building in the traditional core of Dublin with value-enhancing opportunities over the medium to longer term through refurbishment, extension or redevelopment. We look forward to working with Eversheds to help meet their future accommodation needs," said Chief Executive Officer Kevin Nowlan in a statement.
Shares in Hibernia REIT were trading flat at EUR1.27 Friday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
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