Hibernia REIT agrees 20-year lease with ComReg

Shares in Hibernia REIT dipped marginally by 1.01% on the Irish Stock Exchange yesterday as it released its latest trading update covering the period to the end of June 2016.

While expressing his satisfaction with the quarter, Hibernia chief executive Kevin Nowlan said it was too early to determine the impact of Brexit on the Dublin office accommodation and investment markets.

“It is too early to see any discernible impact, positive or negative, on the occupational and investment markets in Dublin following the EU referendum result in the UK.

“We have a talented team, low gearing and an exciting development pipeline: we are confident that we will be able to capitalise on opportunities as they arise and we remain optimistic for the future,” Mr Nowlan said.

Hibernia announced that it has let the remaining 2805sq m of available office space in One Dockland Central to communications regulator, ComReg on a 20-year lease.

ComReg will pay initial rent of €1.6m per annum.

During the quarter, Hibernia acquired blocks 1, 2 and 5 Clanwilliam Court in Dublin 2 which provides more than 8,700 sq m of office accommodation and 220 underground parking spaces for €51m.

The blocks are just over three-quarters occupied at present, generating rent of €2.9m — a net initial yield of 5%.

“We are pleased with our progress in the quarter — our committed development schemes remain on schedule and the purchase of Blocks 1, 2 & 5 Clanwilliam Court is an exciting addition to our longer term development pipeline and, together with the letting to ComReg announced today, increases our contracted rent roll to over €43m,” Mr Nowlan said.