Hibernia acquires the Observatory Building

Hibernia acquires the Observatory Building in Dublin for €52.25m

Hibernia REIT plc (Hibernia) announces it has exchanged contracts to acquire the Observatory Building for €52.25m. The property is located on the riverfront at Sir John Rogerson's Quay in the South Docks area of Dublin and is immediately in front of the Hanover Building and Windmill Lane site, which Hibernia recently acquired.

The Observatory Building was built in 2006 and comprises 86,213 sq. ft. of Grade A office accommodation arranged over six floors accessed from Sir John Rogerson's Quay, with 47 basement parking spaces. In addition there are eight partially completed two bedroom apartment units of c. 1,400 sq. ft. each and two vacant retail units totalling 2,059 sq. ft., fronting onto Windmill Lane.

The office space is over 95% let to a range of tenants, including Riot Games and Publicis, off low average rents of €26 per sq. ft., with a weighted average period to break of four years and an average unexpired lease term of 11 years. Over 44% of the current rent roll has rent reviews during or before 2018 with 56% subject to review in 2019. The annual headline rent is €2.2m: of this, €1m is currently subject to a rent free period ending in May 2015 and a further €0.2m is subject to a rent free period ending in February 2016. Once the rent free periods expire, the building will generate a net yield of c. 4.1%. The purchase price reflects a capital value of €586 per sq. ft. for the office space.

Following the completion of this transaction, Hibernia will have concluded eight acquisitions since listing, committing €307m, over 82% of the net proceeds raised in December 2013.

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

"Our acquisition of the Observatory Building adds another high quality, central Dublin office property with substantial reversionary potential to our portfolio. Its location adjacent to our existing office building and site with planning permission for 125,000 net sq. ft. of offices on Windmill Lane consolidates our position in this attractive and easily accessible South Docks area and will offer significant benefits in the longer term through active asset management.

"The Hibernia portfolio is now taking shape and I am extremely pleased with the progress to date: in less than six months we have deployed €307m in transactions that have enabled us to execute our strategy in a disciplined and focused manner."

ENDS

Contacts:

WK Nowlan REIT Management Limited + 353 1 9058350

Kevin Nowlan

Tom Edwards-Moss

Murray Consultants

Doug Keatinge;  +353-1-4980379 / +353-86-0374163; [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.