Hibernia sells New Century House for €65.3m
Hibernia REIT has exchanged contracts to sell New Century House in Dublin to a fund managed by Credit Suisse Asset Management Global Real Estate in a €65.3m (£57.7m) deal.
The deal reflects a net initial yield of 4% and a capital value of €815 (£720) per sq ft.
Completion is expected to occur in September.
Hibernia REIT has exchanged contracts to sell New Century House in Dublin to a fund managed by Credit Suisse Asset Management Global Real Estate in a €65.3m (£57.7m) deal.
The deal reflects a net initial yield of 4% and a capital value of €815 (£720) per sq ft.
Completion is expected to occur in September.
The property is located on Mayor Street in Dublin’s international financial services centre, and comprises 80,000 sq ft of offices with further basement storage areas and parking.
It is fully let to Bank of Ireland, producing rental income of €2.9m (£2.6m) per annum, with 0.6 years to rent review and 5.6 years to lease expiry.
Hibernia initially purchased New Century House in March 2014 for €47m (£41.5m), representing a capital value of €585 (£517) per sq ft for the office accommodation and a net initial yield of 3.9%.
This yield rose to 5.9% following the expiry of a rent abatement in October 2015.
Richard Ball, chief investment officer of Hibernia, said: “New Century House was Hibernia’s first office acquisition following our initial public offering in late 2013.
“Since then the building has increased in value substantially, helped by the strong recovery in the Irish property market and by demand for prime office assets in Dublin’s city centre. The sale continues our recycling of capital into new projects.”
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