Hibernia REIT’s chief executive Kevin Nowlan confirmed at the company’s general meeting that the firm has begun discussions with domestic and international lenders about obtaining funding for Irish commercial property.
Since €372m in equity has been raised to date, the company can legally borrow up to the same amount. Market analysts expect that the actual figure borrowed will be somewhere around the €175m mark.
Mr. Nowlan remarked that gearing up is the next step for the firm and that he would not eliminate another round of equity raising in the future.
When questioned about the relatively low yield from its portfolio of just over four per cent, Mr. Nowlan stated that there was “huge scope”to increase rents when rent reviews came up.
He pointed out that prime Dublin rents are now over €40 per sq ft but that some of Hibernia’s tenants have leases at €29 per sq ft so there clearly room to raise rents across the portfolio.
Hibernia recently completed a deal to take on a site locoed at Windmill Lane in the docklands. It has planning permission for 120,000 sq ft of development, and work will begin soon.
