22nd Aug 2014 07:41
LONDON (Alliance News) - Hibernia REIT and Empiric Student Property PLC Friday said they have added to their portfolios, with Hibernia buying a central Dublin property and Empiric buying student accomodation property in Birmingham.
Hibernia REIT said it has agreed with an affiliate of Atlas Capital Group LLC to acquire The Forum building in central Dublin in a deal worth EUR37.8 million.
The building in Dublin's International Financial Services Centre comprises 47,109 square feet of office space over two floors. The site also had a four floor car park with 370 spaces.
The net initial yield is 7.0% and the price equates to a capital value of around EUR550 per square feet for the office space.
The offices are fully let to Depfa Bank PLC on annual rent of EUR40 per square feet 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 EUR2 million a year.
Hibernia said the remaining 320 car parking spaces are currently utilised by Irish outsourcing company Park Rite, paying EUR675,000 a year, on a lease that has formally expired. Lease discussions are on-going with the tenant.
Meanwhile, Empiric Student Property PLC said it has bought Edge Apartments, a purpose-built student accommodation property in Selly Oak, Birmingham in a deal worth GBP8.9 million.
Empiric bought the site from Prime Student Housing Birmingham Ltd, a joint venture vehicle of London Cornwall Property Partners Ltd, a company controlled by Empiric executive directors Paul Hadaway and Timothy Attlee, and Revcap Advisors Ltd which developed the property.
The property consists of 77 beds and benefits from rental income from a Sainsbury's store, which it let on a 15 year lease, and a coffee shop on the ground floor.
Hibernia shares were quoted flat at EUR1.09 Friday morning, while Empiric shares were untraded, quoted at 101 pence.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
HBRN.LEmpiric