DUBLIN: Dublin-listed Hibernia REIT has taken control of Cumberland House on Fenian Street in Dublin 2 for €49m.
Under the terms of the deal, Hibernia will pay €10m in cash to the owners, Morretino Group. Hibernia extended a €38m loan to Morretino last September and the loan, along with €1m in interest, will account for the balance of the deal. Morretino is a subsidiary of the Christopher Bennett Group.
Hibernia had been in exclusive talks with Morretino to buy the property last September, but those talks concluded without a sale being agreed.
Morretino then listed the office block on the open market with an asking price of €50m but a deal has now been done.
Cumberland House is a seven-storey office building with parking spaces for 213 cars. It was constructed in the late 1970s. The block is almost certain to be redeveloped. There is existing planning permission to replace the current building with up to 250,000 sq ft of new offices while it could also be refurbished and extended.
This acquisition is Hibernia’s 15th since listing in December 2013. Company chief executive Kevin Nowlan said he was “delighted” with the purchase which equates to a capital value of €360 per sq ft.
