Hibernia Reit acquires Forum building in IFSC for €37.8m

Property investment vehicle Hibernia Reit has acquired The Forum building in Dublin's IFSC for €37.8 million from an affiliate of Atlas Capital Group.

Constructed in 2003, the building is situated on Commons Street and comprises 47,109 square feet of office accommodation over two floors above four floors of car park space.

The offices are fully let to Depfa Bank on annual rent of €40 per square feet on leases which expire in 2029.

The total passing rent from the offices, together with 50 parking spaces also let to Depfa, is worth €2 million a year.

The remaining 320 car parking spaces are currently utilised by Park Rite, paying €675,000 per annum, on a lease that has formally expired. Hibernia said lease discussions are ongoing with the tenant.

The Forum is Hibernia's tenth acquisition since listing since last year and follows its high-profile purchases of Guild House and Commerzbank House also in the IFSC.

In June, it also acquired the Observatory Building at Sir John Rogerson’s Quay in Dublin for €52.25 million.

Hibernia said it expects the Forum deal to be completed in late 2014, at which point, the company will have invested €374 million, with a further €63 million committed.

Hibernia's investment manager Kevin Nowlan said: "We are delighted to have agreed this acquisition: The Forum is a Grade A building in a prime central Dublin location and delivers a substantial running yield."

“It is close to our other three office buildings in the IFSC and the parking capacity it has may in future be beneficial for potential tenants in those buildings,” he added.