A fund managed by Credit Suisse Asset Management Global Real Estate has acquired an office building in Dublin from Hibernia REIT for €65.3 mln, reflecting a net initial yield of 4%.
New Century House, situated on Mayor Street in Dublin’s International Financial Services Centre (IFSC), comprises 7,400 m2 of offices. It is fully leased to Bank of Ireland, with 5.6 years to lease expiry, and generates a rental income of €2.9 mln per year, Hibernia said.
Hibernia acquired the asset in March 2014 for €47 mln, with a net initial yield of 3.9%. The sale price gives Hibernia an ungeared IRR (internal rate of return) on the investment in excess of 12%.
‘New Century House was Hibernia’s first office acquisition following our initial public offering in late 2013,’ said Richard Ball, chief investment officer of Hibernia.
‘Since then, the building has increased in value substantially, helped by the strong recovery in the Irish property market and by demand for prime office assets in Dublin’s city centre. The sale continues our recycling of capital into new projects,’ Ball concluded.
The transaction is expected to complete in September.