Hibernia agrees major prelet with KPMG at Harcourt Square
Hibernia REIT has prelet the majority of its 347,000 sq ft office development at Harcourt Square, Dublin 2 to KPMG Ireland.
KPMG has signed an agreement to lease 288,500 sq ft and 76 car parking spaces on a 20-year term without break from practical completion of the development, which is scheduled for early 2026.
KPMG will pay an initial rent of €17m (£14.5m) per annum from lease commencement and will receive the equivalent of 40 months rent-free through an incentive and enhanced fit-out. A cap and collar at the first rent review after five years has been agreed.
Hibernia REIT has prelet the majority of its 347,000 sq ft office development at Harcourt Square, Dublin 2 to KPMG Ireland.
KPMG has signed an agreement to lease 288,500 sq ft and 76 car parking spaces on a 20-year term without break from practical completion of the development, which is scheduled for early 2026.
KPMG will pay an initial rent of €17m (£14.5m) per annum from lease commencement and will receive the equivalent of 40 months rent-free through an incentive and enhanced fit-out. A cap and collar at the first rent review after five years has been agreed.
KPMG has options to lease up to a further 48,500 sq ft on the same terms, which could take its occupancy at Harcourt Square to 337,000 sq ft in total.
Kevin Nowlan, chief executive of Hibernia, said: “This prelet substantially de-risks our near-term development pipeline and represents an important step for us in achieving our strategic priorities of asset clustering and ESG excellence. It is also a significant expression of confidence in the Dublin office market and in the quality of Hibernia’s offering for businesses and their people in the new work environment.”
KPMG managing partner Seamus Hand added: “Our agreement with Hibernia is a major milestone in our continuing growth and success and is one of the most exciting steps in our firm’s history. We are ambitious for, and confident in, the outlook for our business, and our people collaborating and learning in our new office will have a critical part to play in that future success. This will be one of the biggest developments in Dublin city centre for the next few years and clearly demonstrates our confidence in the capital’s role at the heart of Ireland’s economy.”
Hibernia acquired Harcourt Square in 2015. The leases on the existing 122,000 sq ft of office accommodation expire by the end of December 2022. Plans to redevelop the 1.9-acre site were given the go ahead last year.
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Image from Hibernia REIT
