€47m paid for IFSC bank building

The Hibernia REIT has paid €47m for New Century House in Dublin’s International Financial Services Centre (IFSC) which houses Bank of Ireland.

€47m paid for IFSC bank building

The six-storey landmark office building has over 80,000sq ft of office space with room for 87 cars in the basement.

The long-term tenants Bank of Ireland have agreed to undertake upgrades and improvements which will further enhance the value of the building.

Bank of Ireland are subject to upward only rent reviews on the property.

The rent is €2.85m which resumes in full in October 2015, following the expiry of the current partial rent abatement period, from which point the building will generate a yield of approximately 5.93%.

The lease is in place until 2024 with the next review due in 2019.

WK Nowlan REIT Management Limited chief executive Kevin Nowlan said that the new building was part of a balanced portfolio the company are building.

“We are delighted to have acquired another high quality asset. Our stated objective is to build a balanced portfolio of primarily Dublin-based commercial assets, delivering excellent returns for shareholders.

“New Century House, our first entirely office acquisition, enjoys an excellent location, offers a strong rental income and has the potential to deliver growth in both rental income and asset value as the market continues to recover.

“This is a prime building in a prime location with a long-term lease agreement and a strong corporate tenant. New Century House is an excellent addition to the Hibernia REIT portfolio,” he said.

Previously the Hibernia REIT acquired a portfolio of residential real estate loans including 213 partly completed residential units at Wyckham Point in Dundrum from Ulster Bank for €67 million.

The Hibernia REIT has invested €118m in Irish property, about a third of the €385m it raised in funds when it was floated on the stock market in December 2013.

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