View Harcourt Square, Dublin 2, Ireland in a full screen map
Hibernia has acquired the regional police headquarters at Harcourt Square, Dublin 2, for £50m from Gangkhar in an off-market transaction.
The price equates to a net initial yield of 6.8% and a capital value of around £400 per sq ft.
The 116,848 sq ft office block is let to the Office of Public Works at a passing rent of £3.6m pa. The lease on Block 1 expired in late 2014 and the leases on Blocks 2 to 4 expire in 2016. The Office of Public Works has applied for a lease renewal on Block 1 and discussions are ongoing regarding lease extensions for the other blocks.
Kevin Nowlan, chief executive officer of WK Nowlan REIT Management, Hibernia’s investment manager, said: “We are delighted with this off-market acquisition, which gives us substantial near-term income and exciting redevelopment opportunities in the traditional office core of Dublin.
“The completion of the Luas Cross City project in 2017, linking the Green line to the Red line and the city’s main railway stations, will further enhance the area’s public transport links.
“We expect to submit a planning application shortly and look forward to working closely with Dublin city council to deliver attractive new grade A office space in the city centre in future.”
