Formation of Windmill Lane Joint Venture

Formation of Windmill Lane Joint Venture

Hibernia REIT plc ("Hibernia" or the "Company") announces the formation of a 50:50 joint venture, the Windmill Lane Partnership ("WLP"), with an affiliate of Starwood Capital Group Global, L.P. ("Starwood") to own and develop the Windmill Lane site (the "Windmill Lane Site" or the "Site") in Dublin's South Docks.

The Windmill Lane Site is a one acre development site with planning permission for over 120,000 sq. ft. of offices, c. 7,000 sq. ft. of retail and 15 residential units and forms one part of the quadrant of adjoining or adjacent assets Hibernia has assembled in the South Docks. Hibernia is targeting completion of the development of the Site by the end of 2017: demolition works have completed, piling has commenced and a building contractor is expected to be appointed shortly.

The Site was acquired by Hibernia from Starwood in June 2014 for €7.5m, with Starwood being granted an option (as announced at the time) to buy back in as a 50:50 joint venture partner at purchase price plus a return of 7%, plus costs incurred to date by Hibernia. Starwood will pay €4.9m for its share in WLP, to which ownership of the Site will transfer. All future income and expenditure will be shared equally and WK Nowlan REIT Management Limited will act as asset manager and development manager to WLP.

The transaction will result in a small increase to the Company's last reported NAV.

Kevin Nowlan, Chief Executive Officer, WK Nowlan REIT Management Limited, the Investment Manager, said:

"The development of the Windmill Lane Site will deliver best in class new office space in central Dublin at a time of significant shortage and we have made good progress since acquiring the Site. We look forward to working with Starwood to complete this exciting project." 

ENDS

Contacts:

WK Nowlan REIT Management Limited + 353 1 536 9100

Kevin Nowlan

Tom Edwards-Moss

Murray Consultants

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

Orlagh Ryan: +353 87 616 0279, [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.