1st Apr 2019 11:13
LONDON (Alliance News) - Hibernia REIT PLC on Monday said it will return cash to shareholders after selling one of its assets in Dublin.
Hibernia is selling 77 Sir John Rogerson's Quay for EUR35.5 million, with the price "modestly" ahead of the site's book value in December. It was bought for EUR28.7 million in February 2018.
The building is made up of 34,400 square feet of office accommodation, and has a rental income of EUR1.8 million per year.
The proceeds will be returned to shareholders, starting with a EUR25 million buyback programme.
Chief Executive Kevin Nowlan said: "We acquired 77 SJRQ in early 2018 and simultaneously agreed to let the entire building to IWG on a long lease. This, together with the improving surroundings in the eastern end of the South Docks, has resulted in a significant uplift in value during our ownership.
"The sale allows us to concentrate on our larger investments and our development pipeline. We intend to return the net proceeds of EUR35 million to shareholders to maintain our progress towards our leverage target, starting with the EUR25 million share buyback programme we have announced today."
Hibernia shares were down 0.2% on Monday morning at EUR1.34 each.
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