Hibernia acquires two offices in Dublin's IFSC

Hibernia acquires Guild House and Commerzbank House in Dublin's IFSC for €90.75m

Hibernia REIT plc (Hibernia) announces it has exchanged contracts to acquire Guild House and Commerzbank House for €90.75m in cash from a syndicate of private investors in an off-market transaction. The price reflects a capital value of €629 per sq. ft. and a net initial yield of 6.6%.

Guild House and Commerzbank House are two adjoined Grade A office buildings located in the IFSC, Dublin 1, one of the principal locations for the financial services industry in Ireland. The buildings were completed in 2000 and have similar floor layouts and a combined 144,250 sq. ft. of space arranged over 5 floors. They have a shared basement with parking spaces for 148 cars and separate entrances onto Guild Street.

The offices are fully let off average rents of €39 per sq. ft. on leases running to 2025 with a weighted average unexpired term to break of three years. The principal tenants are FBD Holdings Ltd, Commerz Management Services and BNY Mellon.

Following the completion of this transaction Hibernia will have concluded nine acquisitions since listing, deploying €337m, 91% of the net proceeds raised in December 2013, with a further €63m committed.

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

"We are delighted to have agreed this acquisition which gives us ownership of two Grade A offices located in the heart of Dublin's financial district at attractive capital values. These buildings have good running yield and their layout, size and interconnectivity offer significant near term and longer term asset management opportunities. 

"We are continuing to see a very high level of transaction volumes in the Dublin office market: within this we are finding attractive opportunities that meet our selective acquisition criteria, particularly in the off-market and loan spaces."

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.