Listed landlord and developer Hibernia Reit has commenced a share buyback programme of up to €25m.
This comes as it confirmed the sale of the building 77 Sir John Rogerson’s Quay in Dublin 2 for €35m, the net process of which will be used for the share buyback.
The office block, located close to the Samuel Beckett bridge, was acquired by Hibernia last year for €28.7m.
Today’s price reflects a net initial yield of 4.6pc and a capital value of €1,040 per sq. ft. for the office accommodation.
The building comprises 34,400 sq. ft. of office accommodation and 20 parking spaces. It is fully let to International Workplace Group (IWG), producing rental income of €1.8m per year, with four years to next rent review and 14 years remaining on the rental contract.
Kevin Nowlan, Hibernia Reit CEO, said:
“We acquired 77 SJRQ in early 2018 and simultaneously agreed to let the entire building to IWG on a long lease.”
“This, together with the improving surroundings in the eastern end of the South Docks, has resulted in a significant uplift in value during our ownership. The sale allows us to concentrate on our larger investments and our development pipeline.”
Meanwhile the share buyback will commence tomorrow and may continue until the end of the year, subject to market conditions and the ongoing capital requirements of the business, according to a statement from the group.
The maximum number of ordinary shares to be repurchased under the programme is 69,758,891.
Goodbody Stockbrokers has been enlisted for the buyback programme.