Hibernia to acquire two Grade A Dublin offices

Hibernia REIT plc

Hibernia enters agreement to acquire two Grade A Dublin offices

Hibernia REIT plc ("Hibernia") announces that it has exchanged contracts to acquire Montague House and Hardwicke House in Dublin 2 from Hardwicke Group in a partially deferred transaction valuing the buildings at €60m or €692 per sq. ft.

The transaction is initially being structured as a loan acquisition, with Hibernia paying a sum of €18.25m and gaining immediate operational control of the buildings. Under the terms of the contract, Hibernia will have the right to take full ownership of the buildings at any time up to mid-2016 for an incremental sum of €41.75m and under current Irish REIT rules is likely to do so in December 2015. Upon taking full ownership, the net initial yield (after costs) will be 4.4% based off average passing rents of €30 per sq. ft., with all the income subject to rent reviews by the end of 2018. The net initial yield on the €18.25m loan amounts to 7.7%.

The properties are located in the core of Dublin's traditional CBD on two contiguous back-to-back sites which front onto Hatch Street Upper (Hardwicke House) and Adelaide Road (Montague House). The location benefits from strong transport links and proximity to excellent amenities.

Both properties were built in 1999 and provide 88,483 sq. ft. of prime Grade A office accommodation across five stories and 56 basement car parking spaces. Both are multi-let to a range of high quality tenants including Prudential International Assurance, Deloitte and Capita, with a weighted average unexpired lease term across the two buildings of seven years. Of the current €2.7m annual rent roll, 12% will be reviewed in 2016 and 88% is due to be reviewed in 2018. 12% of the rent roll is subject to tenant break clauses in 2016.

This is the fourth acquisition by Hibernia since listing in December 2013 and will bring total funds committed to approximately €208m.

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

"We are delighted to be acquiring these two excellent quality, well-let office buildings, located in the heart of Dublin's CBD. They have significant reversionary potential at current estimated rental values and we have structured the transaction to maximise the returns we generate for shareholders. The expected completion in 2017 of the Luas Green line extension will further enhance the area's public transport connections and the recent commitment of KPMG and law firm Arthur Cox to the area is a testament to its enduring appeal to top professional firms. We are pleased that in less than five months since commencing operations in January 2014 we have now committed over 50% of the funds which shareholders entrusted us with in December 2013."

Brian Owens, Chief Executive Officer of Hardwicke Group said:

"We are very pleased to have agreed the sale of these buildings, which we have owned since developing them in 1999, to Hibernia REIT. Hardwicke has had a long and fruitful relationship with Bill Nowlan stretching back almost 40 years and involving more than 10 transactions. We hope this relationship will continue and we look forward to working with Kevin and his team in concluding this transaction."

ENDS

Contacts:

Murray Consultants +353 1 4980300

Jim Milton

Orlagh Ryan

WK Nowlan REIT Management Limited + 353 1 9058350

Kevin Nowlan, Chief Executive Officer

Notes to Editors

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.