Property investment vehicle Hibernia Reit has acquired Guild House and Commerzbank House in the IFSC for €90.75 million in cash from a syndicate of private investors in an off-market transaction.

The two adjoining Grade A office blocks were completed in 2000 and have similar layouts and a combined 144,250 sq ft of space arranged over five floors. They have a shared basement with parking spaces for 148 cars and separate entrances onto Guild Street.

The price paid reflects a capital value of €629 per sq ft and a net initial yield of 6.6 per cent.

The offices are fully let off average rents of €39 per sq ft on leases running to 2025 with a weighted average unexpired term to break of three years. The principal tenants are FBD Holdings, Commerz Management Services and BNY Mellon.

"These buildings have good running yield and their layout, size and interconnectivity offer significant near term and longer term asset management opportunities," said Kevin Nolan, chief executive of Hibernia Reit.

Following the completion of this transaction Hibernia will have concluded nine acquisitions since listing last year. It has deployed €337 million, or 91 per cent of the net proceeds raised in December 2013, with a further €63 million committed.

Last month the group acquired the Observatory Building at Sir John Rogerson’s Quay in Dublin for €52.25 million.

Investec voiced its approval for the latest acquisition. In a note to investors it said: “this looks like another tidy deal for Hibernia Reit, which has added two well-located Grade A office buildings delivering an attractive running yield to its portfolio. Hibernia Reit has the balance sheet to push on from here and complete more deals.”

Separately, Goodbody described the acquisition as a good deal for Hibernia. It retained its buy call and reiterated its €1.32 price target.