Hibernia Reit snaps up office block in Dublin docklands for €51.3m

Property firm Hibernia Reit has agreed to pay €51.3 million for Central Quay, a modern office block located between Sir John Rogerson’s Quay and Hanover Quay in Dublin’s South Docks.

Completed in 2007, Central Quay is a 57,700 square foot office building arranged over six floors with 26 car parking spaces.

It is currently 88 per cent occupied and let to three tenants - Awas Aviation Acquisitions, Indeed Ireland and Invesco Global Asset Management.

The contracted rent is €2.5 million, representing a net initial yield of 4.5 per cent.

Once fully occupied and following the re-letting of the third floor, where the current lease expires in September 2016, the yield on cost is expected to exceed 5.5 per cent.

The €51.3 million purchase price equates to a capital value of €890 per square foot for the office space.

" The property adds to our portfolio of high quality offices in Dublin's city centre and is situated close to our existing assets in the South Docks," Hibernia's chief executive Kevin Nowlan said.