An Irish property investment company has secured a €90.7m deal to buy adjoining office buildings in the heart of Dublin’s financial district.
Hibernia REIT yesterday announced that it had bought Guild House and Commerzbank House in the capital’s International Financial Services Centre (IFSC).
Commenting on the acquisition, Hibernia REIT investment manager, Kevin Nowlan said: “We are delighted to have agreed this acquisition which gives us ownership of two Grade A offices located in the heart of Dublin’s financial district at attractive capital values. These buildings have good running yield and their layout, size and inter-connectivity offer significant near term and longer term asset management opportunities,” said Mr Nowlan.
“We are continuing to see a very high level of transaction volumes in the Dublin office market. Within this we are finding attractive opportunities that meet our selective acquisition criteria, particularly in the off-market and loan spaces,” he added. The purchase is the real estate investment trust’s ninth acquisition since its inception in December 2013.
Ninety-one per cent of the €365m capital raised by Hibernia has now been invested, with a further €63m committed.
Commenting on the deal, Investec said: “This looks like another tidy deal for HRBN, which has added two well-located Grade A office buildings delivering an attractive running yield to its portfolio”.
The buildings, which were built in 2000, have a combined 144,250 sq ft of office space and are fully let garnering a yield of 6.6%.
Tenants include FBD Holdings, Commerz Management Services and Bank of New York Mellon.
© Irish Examiner Ltd. All rights reserved