Acquisition completion and lease surrender

Acquisition completion and lease surrender

Hibernia REIT plc ("Hibernia" or the "Company") announces that it has exercised its option to take direct ownership of Hardwicke House and Montague House, Dublin 2, for a net payment of €41.8m (excluding costs). Hibernia initially acquired an interest in the buildings via secured loans for €18.2m in May 2014, with an option to take full ownership at any time up to mid-2016: the exercise of the option brings the total consideration paid to €60m excluding costs (c. €64m including costs, equivalent to €725 per sq. ft.). 

The buildings, which together total c. 88,500 sq. ft. of office space, are multi-let to a range of tenants including Prudential, Deloitte and Capita. The passing rent is €2.7m per annum (an average of €30 per sq. ft.), with over 90% of this subject to rent review by the end of 2018. Under the Company's accounting policies, both buildings have been booked in its financial statements to date on a 100% basis, with corresponding liabilities and interest expenses to reflect the partial ownership position.

Separately, Bank of New York Mellon ("BNY Mellon") has served notice to exercise its break options regarding its leasehold interests in the Hanover Building, Dublin 2, in December 2016. BNY Mellon currently occupies all c. 44,000 sq. ft. of office accommodation in the building and 14 car parking spaces and is paying annual rent of €1.4m (an average of €30 per sq. ft. for the office space). Hibernia is considering its options for the building, with current estimated rental values well in excess of the passing rent.

Kevin Nowlan, Chief Executive Officer of Hibernia, said:

"We are pleased to have taken full ownership of Hardwicke House and Montague House at a total capital cost of €725 per square foot, well below current market value. With average rents of €30 per square foot and over 90% of the rent roll subject to review by the end of 2018, these buildings fit firmly into our reversionary "in-place" portfolio strategy.

"With our significant development programmes at Windmill Lane and 1-6 Sir John Rogerson's Quay, we are excited to be gaining vacant possession of the office accommodation in the adjoining Hanover Building in December 2016. We will take some time to assess our options to maximise the value of the asset."

ENDS

Contacts:

Hibernia REIT plc + 353 1 536 9100

Kevin Nowlan, Chief Executive Officer

Tom Edwards-Moss, Chief Financial Officer

Murray Consultants

Doug Keatinge: +353 86 037 4163, [email protected]

Jill Farrelly: +353 87 738 6608, [email protected]

About Hibernia REIT plc

Hibernia REIT plc is an Irish Real Estate Investment Trust ("REIT") and is listed on the Irish and London Stock Exchanges. The principal activity of the Company is to acquire and hold investments in Irish property (primarily commercial property) with a view to maximising shareholder returns.