Hibernia REIT : sells Chancery, D8, for €23.8m

Hibernia REIT plc ('Hibernia') announces that it has sold the Chancery for €23.8m, which equates to a blended net initial yield of 5.9% and a capital value of €645 per sq. ft. for the office accommodation.

The property is located on Chancery Lane close to Dublin Castle in central Dublin and comprises 35,000 sq. ft. of offices and four 2-bed apartments: it is fully let to tenants including the Office of Public Works, Wella and Analytic Partners, producing rental income of €1.5m per annum.

Hibernia purchased the Chancery together with a 0.05 acre site in May 2014 for €16m via a secured loan acquisition: the price represented a blended net initial yield of 6.8% and a capital value of €445 per sq. ft. for the office accommodation. Since then Hibernia has extended the weighted average unexpired lease term of the office tenants from two years to eight years. The sale price of €23.8m is over 1.3% ahead of the September 2017 valuation, and represents an ungeared IRR on the investment in excess of 17%.

Richard Ball, Chief Investment Officer of Hibernia, said:

'The Chancery was one of our early purchases in 2014 via a secured loan acquisition. Since then the building has performed strongly due to the attractive purchase price, our leasing activity and the market recovery. This sale allows us to recycle our capital into new projects.'

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