Hibernia REIT is buying a €37.8m Dublin office building in its tenth acquisition since listing in December 2013.
The investor said it had exchanged contracts with an affiliate of Atlas Capital Group to buy The Forum building in the IFSC, Dublin 1, in an off-market transaction.
The deal for the 2003 building, which is on Commons Street and includes four floors of car parking with 370 spaces, reflects a net initial yield of 7%.
Hibernia added that the price equates to a capital value of circa €550 per sq ft for the office space.
The offices are fully let to Depfa Bank on annual rent of 40 per sq ft on leases which expire in 2029, with options to break in 2019.
Total passing rent from the offices, together with 50 parking spaces also let to Depfa, is €2m pa.
The remaining 320 car parking spaces are currently used by Park Rite, paying €675,000 pa, on a lease that has formally expired. Lease discussions are on-going with the tenant.
The acquisition is expected to complete in late 2014, following which Hibernia will have invested €374m, with a further €63m committed.
Kevin Nowlan, chief executive of WK Nowlan REIT Management, the vehicle’s investment manager, said: “We are delighted to have agreed this acquisition. The Forum is a grade-A building in a prime central Dublin location and delivers a substantial running yield.
“It is close to our other three office buildings in the IFSC and the parking capacity it has may in future be beneficial for potential tenants in those buildings.”
