Ahead of its AGM later today, Hibernia REIT (HBRN) has issued an IMS covering the period since the 1st of April. It has been a busy time for HBRN, which has completed eight acquisitions totalling €267m in the period, primarily office accommodation in central Dublin.
As previously announced, following completion of the Guild House and Commerzbank House transaction announced on July 15, HBRN will have invested €336m or 90% of the net proceeds raised from its IPO, with a further €63m committed.
HBRN’s current property portfolio now comprises (by cost) 74% central Dublin offices, 2% central Dublin office development land, 21% Dublin residential and 3% Dublin industrial/logistics. It has a net initial yield of 4.1% (4.7% post the expiry of rent frees and abatements). The office space is over 99% occupied on weighted average contracted rents of €33 per sq ft, well below the current asking rate (€40-45 per sq ft) for prime central Dublin office accommodation, with rental values projected to rise further. With the aid of its strong balance sheet we expect HBRN to continue to expand its portfolio over the coming months, with one potential catalyst for deals being the accelerated resolution of NAMA.
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