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