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Hibernia Buys €29M Office And Straight Away Leases It To Flexible Workspace Firm

Dublin docklands

Hibernia REIT has bought a six-storey office at 77 Sir John Rogerson's Quay for €28.7M and straight away found a new tenant for the whole building.

Constructed in 2004, the building is located near the eastern end of Dublin’s South Docks.

According to the, Hibernia plans to spend €0.5M on renovating the 34.4K SF vacant building. With the improvement spend included, the acquisition price equates to a capital value of €850/SF for the office space.

An agreement has been reached with a subsidiary of International Workplace Group to let the building on a 25-year lease, with 15 years term certain. 

IWG will pay €50 per SF, an initial rent of €1.8M. In addition to this they will also receive nine months rent free. The lease is expected to start next year.

The net yield will be 5.8% after the rent-free term, and this will rise to 6.3% following a fixed rent increase after five years. 

"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 joining State Street, Accenture and AirBnB in the area," Hibernia Chief Executive Kevin Nowlan said.