Hibernia REIT has agreed a deal to buy New Century House in Dublin's International Financial Services Centre (IFSC) for €47m.

The property is an office building in a prime city centre location and houses Bank of Ireland as a long term tenant.

New Century House is a six storey over basement office building, comprising a net area of 80,000 square feet of office space.

There is basement parking for 87 cars. Bank of lreland is to undertake upgrades and improvements which will further enhance the value of the building.

This is the second acquisition by Hibernia since listing last December and brings total funds invested to about €118m in a diverse portfolio of assets.

"New Century House, our first entirely office acquisition, enjoys an excellent location, offers a strong rental income and has the potential to deliver growth in both rental income and asset value as the market continues to recover," commented Kevin Nowlan, the company's investment manager. 

"This is a prime building in a prime location with a long term lease agreement and a strong corporate tenant. New Century House is an excellent addition to the Hibernia REIT portfolio," he added.

REITs are quoted companies that own or operate commercial property. They are not taxed on the rental income as long as they pay 85% of it to their shareholders as a dividend.