California-based software developer Informatica has been leased new office space in Dublin.
Irish property investment group Hibernia Reit announced on Friday that it has pre-let two floors of its 1 Windmill Lane development to the company.
Informatica will occupy the fourth and fifth floors of the property, totalling 3,250sq m (35,000sq ft). It comes with 10 car parking spaces.
The deal involves a 17-year lease, with 12 years term certain. The company will pay initial rent of €2.1 million per year, including annual contributions to the reception and Townhall areas.
Informatica will receive six months rent free from practical completion, which is expected in the middle of this year.
Total property
The property totals 122,000 sq ft of offices, 7,000 sq ft of retail and 14 residential units under development on a one-acre site.
It is one of five adjacent properties which Hibernia Reit owns in the area, comprising more than 370,000 sq ft of office space either in-place or under construction.
Hibernia director of development Mark Pollard said the building "continues to make good progress" towards expected practical completion this year.
“With the structure now fully enclosed and interior works underway, the quality of the space being delivered is becoming clear, with the stand-out features being the reception and Townhall areas, which are unusual in their scale and flexibility and are attracting positive feedback,” he said. “Discussions are on-going with a number of other potential tenants.”
In a note, Goodbody said the deal was “an important letting” for Hibernia and the market given that it is not Brexit-related.
“The lettings evidence will aid further yield compression at the Windmill Lane development, getting close to our modelled FY17 initial yield of 5 per cent for this building,” it said.
“Furthermore, Hibernia’s purchase of Starwood’s 50 per cent share of 1 Windmill Lane will mean it will get the full benefits of this development upside.
“This represents a strong end to the fiscal year for Hibernia and a sign that the co- working flexible space model employed at 1 Windmill Lane is working and tenants like it.
“This bodes well for letting the remaining 87,000sq ft at the site and future 110,000sq ft at 1 Sir John Rogerson’s Quay.”
