10th Feb 2015 08:57
LONDON (Alliance News) - Hibernia REIT PLC on Tuesday said it has exchanged contracts to acquire the regional police headquarters building on Harcourt Square in Dublin for EUR70 million.
It is buying the site from Gangkhar PLC, an Ireland-based property investor. The price reflects a net initial yield of 6.8%.
The property is currently let to the Office of Public Works and is fully occupied by the police force at a passing rent of EUR4.9 million per year.
"We are delighted with this off-market acquisition which gives us substantial near-term income and exciting redevelopment opportunities in the traditional office core of Dublin. The completion of the Luas Cross City project in 2017, linking the Green line to the Red line and the city's main railway stations, will further enhance the area's public transport links," said Kevin Nowlan, the chief executive officer of Hibernia REIT's investment manager, WK Nowlan REIT Management Ltd.
Hibernia shares were down 0.4% at EUR1.125 on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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