Property investment group Hibernia Reit has acquired One Earlsfort Terrace, the home of law firm Eversheds, near St Stephens Green for €19.2 million.
Part of the Earslfort Centre, the building, which is located on the corner of Earlsfort Terrace and Hatch Street Lower, comprises 21,700 sq ft of office accommodation across five floors plus basement and 19 underground car parking spaces.
The building is fully occupied by Eversheds on a lease to 2026, with scheduled upward only rent reviews in September 2016 and 2021, producing current passing rent of €630,000 per annum, equivalent to €26 per sq ft excluding parking.
Hibernia said the law firm had agreed that its rent will rise to €1million per annum, equivalent to €45 per sq ft, from September.
The group said the purchase price represents a capital value of €880 per sq ft and the yield on cost following the rent review will be 5.3 per cent.
"This is a well-situated building in the traditional core of Dublin with value-enhancing opportunities over the medium to longer term through refurbishment, extension or redevelopment. We look forward to working with Eversheds to help meet their future accommodation needs," said Hibernia chief executive Kevin Nowlan.
