Acquisition of Starwood interest in Windmill Lane

Acquisition of Starwood interest in Windmill Lane Partnership

Hibernia REIT plc ("Hibernia") announces that it has acquired the interest of Starwood Capital Group ("Starwood"), held by a controlled affiliate, in their 50:50 joint arrangement, the Windmill Lane Partnership ("WLP"). WLP was formed in 2015 to hold and develop 1 Windmill Lane ("1WML"), a one acre site in Dublin's South Docks where 122,000 sq. ft. of offices, 7,000 sq. ft. of retail and 14 residential units are under construction, scheduled for completion in late 2017.

Hibernia has paid Starwood €27.5m and has assumed Starwood's 50% share of the €44.2m non-recourse debt facility with Deutsche Bank AG, London Branch ("Deutsche Bank"), which is currently €8.8m drawn (on a 100% basis) and will be used to fund the estimated remaining capital expenditure of €28m. The price paid is modestly ahead of the September 2016 valuation and, together with the expected remaining costs to complete, equates to capital value of c. €750 per sq. ft. for the office space. Hibernia expects the transaction to enhance NAV in the near term.

The acquisition means Hibernia now has full ownership of five adjacent properties (including SOBO Works) in the SOBO District of Dublin's South Docks, comprising over 370,000 sq. ft. of office space either in-place or under construction.

Richard Ball, Chief Investment Officer of Hibernia, said:

"We are delighted to gain full ownership of 1WML, which, together with 1SJRQ, will deliver over 230,000 sq. ft. of best in class new office accommodation in central Dublin at a time when vacancy is at record lows. We look forward to completing this exciting project in the next 12 months and progressing discussions with potential tenants in the near term."

ENDS

Contacts:

Hibernia REIT plc +353 1 536 9100

Richard Ball, Chief Investment 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]

Notes to editors

WK Nowlan REIT Management Limited, the former investment manager ("Investment Manager") of Hibernia, acted as asset manager and development manager to WLP prior to its acquisition as part of the internalisation of the management team. Under the terms of the internalisation, any fees paid by Starwood in respect of the development of 1WML will be paid on by Hibernia (net of costs) to the former shareholders of the Investment Manager as deferred consideration. Consequently, neither Kevin Nowlan or William Nowlan, as potential beneficiaries, took part in the Board's deliberations regarding the acquisition of Starwood's interest in WLP.

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.