Hibernia REIT plc (“Hibernia”) announces that it has acquired One Earlsfort Terrace, Dublin 2, for €19.2m.
The building comprises 21,700 sq ft of office accommodation across five floors plus basement and 19 underground car parking spaces. It is part of the Earlsfort Centre, a mixed use development with over 250,000 sq ft of office space, and is located on the corner of Earlsfort Terrace and Hatch Street Lower, a short distance from St. Stephen’s Green in the centre of Dublin. There is existing planning permission for two additional floors which would add c. 6,000 sq ft of net lettable area.
The building is fully occupied by international law firm Eversheds on a lease to 2026, with scheduled rent reviews (upwards only) in September 2016 and 2021, producing current passing rent of €0.63m per annum (€26 per sq ft excl. parking). Concurrently with the acquisition, Hibernia has agreed with Eversheds that the rent will rise to €1.0m per annum (€45 per sq ft excl. parking) at the next rent review in September 2016.
The purchase price represents a capital value of €880 per sq ft and the yield on cost following the rent review will be 5.3%.
Kevin Nowlan, Chief Executive Officer of Hibernia, said:
“We are delighted to have acquired One Earlsfort Terrace. This is a well-situated building in the traditional core of Dublin with value-enhancing opportunities over the medium to longer term through refurbishment, extension or redevelopment. We look forward to working with Eversheds to help meet their future accommodation needs.”