Formation of flexible workspace partnership and pre-let
Hibernia REIT plc (“Hibernia”) announces that it has formed a partnership with a flexible workspace provider which will occupy 21,000 sq. ft. in Clanwilliam Court and separately that it has pre-let 16,000 sq. ft. in Two Dockland Central (formerly Guild House).
At Block 1 Clanwilliam Court, Dublin 2, Hibernia has entered a five year partnership agreement with Iconic Offices (“Iconic”) for the establishment of a serviced office and co-working business which will occupy 21,000 sq. ft. over three floors. This reduces vacancy across Blocks 1, 2 & 5 Clanwilliam Court, which were acquired by Hibernia in June 2016, to below 2%. Iconic is a leading Dublin-based flexible workspace provider and is already a tenant of Hibernia in SOBO Works, an 11,000 sq. ft. office on Windmill Lane.
Under the agreement Hibernia will provide the property and Iconic will manage the business operations, with the income generated being shared. Hibernia will fund the majority of the fit-out costs, estimated at €1m, and will receive the majority of net income from the occupier (after amortisation of the cost of fit-out) up to a level equating to headline rent of c. €45 per sq. ft. over the five year period. Iconic will receive the majority of any net income above this level.
At Two Dockland Central, in Dublin’s North Docks, 16,000 sq. ft. currently under refurbishment has been pre-let to HubSpot Ireland Limited (“HubSpot”). HubSpot, a leading provider of inbound marketing and sales software, will pay initial rent of €52.50 per sq. ft. on a 19 year lease with a tenant-only break option in the 11th year and will receive six months rent free from lease commencement (expected mid-2017). HubSpot already occupies 27,500 sq. ft. of office accommodation in the adjoining One Dockland Central. Works to refurbish Two Dockland Central and all its common areas to Grade A standard are due to complete in late 2017.
Frank O’Neill, Chief Operations Officer of Hibernia, said:
“The establishment of a partnership with Iconic Offices in Clanwilliam Court is an exciting step for us. Co-working and flexible workspace are becoming increasingly significant elements of the office market and we look forward to working with the Iconic team, whom we know well from SOBO Works, to meet this tenant demand. In the medium term, Clanwilliam Court continues to offer significant opportunities for repositioning, whether via refurbishment or redevelopment.
“We are pleased to have leased a further 16,000 sq. ft. to HubSpot to accommodate their growing business. The space will be contiguous with HubSpot’s existing accommodation in One Dockland Central, a feature we identified would be attractive to tenants when we underwrote the acquisition of the two buildings. The refurbishment of Two Dockland Central is progressing well and discussions continue with other potential occupiers.”
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