Hibernia portfolio hits €1bn

Hibernia REIT’s portfolio is now valued at €1bn (£879m) and robust leasing activity has led to an 18.5% increase in the rent roll. Speaking to Estates Gazette about the company’s half-year results, chief executive Kevin Nowlan said the company was well placed to take advantage of strong occupier demand through its development pipeline. He added that enquiries had increased significantly from companies thinking about relocating to Dublin after the EU referendum. “If you are thinking of doing it, you probably want to get in and commit your space now. The vacancy rate in Dublin is at an all-time low,” he said. “Take-up last year was around 2m sq ft and the city only delivered 200,000 sq ft of available space, which is still significantly below the take-up without even factoring the Brexit scenario. “Take-up is 1m sq ft this year, so 2019 is the first year we estimate the market will actually deliver space to meet demand – there will be 2m sq ft delivered.” Hibernia has completed three schemes in the period: 191,000 sq ft of new space at Cumberland, which delivered 59% profit, and One Dockland Central and SOBO Works which delivered profit of more than 30%. Contracted rent roll is now €46.2m, following major lettings to ComReg and MTT and the acquisition of Clanwilliam Court. It also has three development schemes of around 230,000 sq ft, Windmill and Sir John Rogerson’s Quay, which remain on track for late 2017 and mid-2018 completions, and the refurbishment of Two Dockland Central, which is expected to complete in late 2017. In the longer term, the company has up to 134,700 sq ft of offices with redevelopment potential once leases expire in 2020/21 as well as planning granted for phase two of its redevelopment of Harcourt Square, giving total permission for up to 276,500 sq ft of offices on the 1.9-acre site. Hibernia is currently seeking vacant possession from OPW to commence redevelopment, with a court case expected to be heard in early 2017. Hibernia posted a 2.9% increase in EPRA NAV to 134.6 pence per share and pretax profit of €32.4m, down from €73.7m at the same time last year. Nowlan added: “The IPD growth we have seen over the last two years was not going to continue forever and is now starting to regularise itself. We are well positioned to continue to grow through asset management.” • To send feedback, e-mail shekha.vyas@estatesgazette.com or tweet @ShekhaV or @estatesgazette