Hibernia REIT PLC Acquisition (5585D)

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RNS Number : 5585D

Hibernia REIT PLC

01 February 2018

Hibernia acquires South Docks office for EUR28.7m

Hibernia REIT plc ("Hibernia") announces that it has exchanged contracts to acquire 77 Sir John Rogerson's Quay ("77 SJRQ") for EUR28.7m.

77 SJRQ is a six storey office building of 34,400 sq. ft. with 20 basement car parking spaces which was constructed in 2004. The building is situated towards the eastern end of Dublin's South Docks where a number of large development projects are nearing completion. Hibernia is acquiring the building vacant and expects to spend EUR0.5m on improvement works: including these the purchase price equates to a capital value of EUR850 per sq. ft. for the office space.

Separately, Hibernia has agreed to let the entire building to a subsidiary of International Workplace Group plc ("IWG", formerly Regus) on a 25 year lease, with 15 years term certain. IWG will pay initial rent of EUR1.8m (EUR50 per sq. ft.) and will receive nine months rent free: the lease is expected to commence in mid 2018. The net yield will be 5.8% after expiry of the rent free period, rising to 6.3% following a fixed uplift in rent after year five.

Kevin Nowlan, Chief Executive Officer of Hibernia, said:

"We are delighted to be acquiring 77 SJRQ and welcoming IWG as a long-term tenant. The eastern end of the South Docks is undergoing a transformation with several large development projects approaching completion and occupiers such as JP Morgan and Indeed.com joining State Street, Accenture and AirBnB in the area. The simultaneous agreements show Hibernia's ability to drive value through combining our asset management and deal sourcing capabilities."

ENDS

Contacts:

Hibernia REIT plc [phone]

Kevin Nowlan, Chief Executive Officer

Tom Edwards-Moss, Chief Financial Officer

Murray Consultants

Doug Keatinge: [phone], [e-mail]

Jill Farrelly: [phone], [e-mail]

About Hibernia REIT plc

Hibernia REIT plc is a Dublin-focused Real Estate Investment Trust ("REIT"), listed on the Irish and London Stock Exchanges, which owns and develops Irish property. All of Hibernia's portfolio of properties is in Dublin and it specialises in city centre offices.

This information is provided by RNS

The company news service from the London Stock Exchange

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February 01, 2018 02:00 ET (07:00 GMT)