3rd Apr 2014 07:02
LONDON (Alliance News) - Hibernia REIT PLC Thursday said it has exchanged contracts to acquire a Dublin property for EUR10.0 million.
In a statement, the real estate investment trust said it has agreed to acquire the Gateway site, Newlands Cross, Naas Road, Dublin 22, which is made up of an industrial/logistics facility.
The deal for the warehouse accommodation is being financed from Hibernia's existing cash resources.
It is currently 46% occupied and is producing an annual rental income of EUR517,000, Hibernia said. The current gross yield is 5.12%.
The acquisition is the third by Hibernia since listing in December 2013 and will bring total funds invested to approximately EUR128 million.
"We are very pleased to have acquired an income producing asset with enormous development potential in the medium to long term. The site occupies a strategic location adjacent to the intersection of Ireland's two busiest roads and Dublin's light rail system. The current upgrade works being undertaken to the Naas Road will considerably enhance the attractiveness of this property," Kevin Nowlan, chief executive, said in a statement.
Hibernia REIT shares were up 0.9% at 1.05 pence at the open Thursday.
By Samuel Agini; [email protected]; @samuelagini
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