Hibernia REIT has completed the refurbishment of Cumberland House, Dublin 2, ahead of schedule and has let the remaining 33,000 sq. ft. of available space to Mobile Travel Technologies Limited.
MTT is a leading provider of mobile travel technology and a wholly-owned subsidiary of NYSE-listed company Travelport Worldwide Limited.
It will occupy the fifth and sixth floors of the building and 10 car parking spaces on 25 year leases and will pay initial rent of c. €1.8m per annum after receiving five months rent free from lease commencement which is scheduled for 1 November 2016.
The lease for the rest of the 135,000 sq. ft. building, which was pre-let Twitter, has commenced. Hibernia purchased Cumberland House in March 2015 at a total cost of €51m and has successfully completed the extensive refurbishment works ahead of the scheduled completion date in Q4 2016 for estimated capital expenditure of €29m.
Following expiry of the rent free, the building, which is being renamed 1 Cumberland Place, will generate passing rent of €7.1m per annum, a yield on cost of 9%. The weighted average unexpired lease terms are c. 12 years to break and c. 21 years to expiry. This lease agreement brings Hibernia's total contracted annual rent roll to over €45m.