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Saturday 25 February 2017

Hibernia splashes out €27.5m on docks site

Hibernia CEO Kevin Nowlan
Hibernia CEO Kevin Nowlan

Property investment firm Hibernia Reit has spent €27.5m to buy the 50pc stake of its partner Starwood Capital in 1 Windmill Lane in Dublin's docklands.

The pair joined the Windmill Lane Partnership last year to develop the one-acre site, where 122,000 sq ft of offices, 7,000 sq ft of retail and 14 homes are being built. The project is due to be finished late next year.

Hibernia, led by CEO Kevin Nowlan, has also assumed Starwood's half share of the €44.2m non-recourse debt facility with Deutsche Bank, €8.8m of which is currently drawn.

It expects capital spending on 1 Windmill Lane to reach €28m. Hibernia said the price - which equates to €750 per sq ft - was "modestly ahead" of a September 2016 valuation. The acquisition means Hibernia now has full ownership of five nearby properties in the Sobo District of Dublin's South Docks.

"We are delighted to gain full ownership of 1 Windmill Lane, which, together with 1SJRQ, will deliver over 230,000 sq ft of best-in-class new office accommodation in central Dublin at a time when vacancy is at record lows," said Hibernia chief investment officer Richard Ball.

The news comes after Hibernia fully leased its recently refurbished Cumberland House.

The company spent €51m on the Dublin premises. Following the acquisition it spent a further €29m on refurbishment, leasing the remaining 33,000 sq ft to Mobile Travel Technologies.

Bids

Meanwhile, a 26-bedroom Georgian guesthouse in Dublin city centre has been sold to international hotel group Unlisted Collection for more than €7m - the equivalent of €269,000 a room. Trinity Lodge in South Frederick Street attracted bids from domestic and international hoteliers, according to Dan O'Connor, of JLL Hotels & Hospitality.

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