22nd Jul 2014 10:47
LONDON (Alliance News) - Hibernia REIT PLC Tuesday said it has been active in the market this year, and has now invested over 90% of the funds raised at its EUR385 million initial public offering in December.
In an interim management statement for the period April 1 to date, the Ireland-focused property investor said it completed eight acquisitions totalling EUR267 million during the period, primarily in the central Dublin office sector.
Most recently, the company acquired Guild House and Commerzbank House in central Dublin for EUR90.8 million in cash from a syndicate of private investors in an off-market transaction. Following this acquisition, Hibernia said EUR336 million has been invested since its IPO.
The make-up of the company's portfolio is 74% central Dublin offices, 2% central Dublin office development land, 21% Dublin residential and 3% Dublin industrial/logistics. Hibernia said the portfolio has a net initial yield of 4.1%.
The office space is over 99% occupied on weighted average contracted rent of EUR33 per square feet, which is well below current estimated rental values for prime central Dublin offices of EUR40-45 per square feet. Hibernia said its rental values are projected to rise going forward.
Looking ahead, Hibernia said it will continue to consider all available funding options including debt, equity and joint ventures. However, Hibernia said in the first instance it will seek to put in place debt on its existing equity base.
Chief Executive Kevin Nowlan also said: "We continue to see a very high level of transaction volumes in the Dublin office market: within this we are finding attractive acquisitions that meet our selection criteria, particularly in the off-market and loan spaces."
Hibernia REIT shares were quoted up 0.7% at EUR1.10 Tuesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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