Hibernia REIT has agreed a new non-renewable six year lease with the Office of Public Works at Harcourt Square from January.

The OPW will pay an increased annual rent of €6m for the offices, car parking and ancillary facilities as well as a once-off arrears payment of €0.5m. 

Hibernia bought Harcourt Square in February 2015. 

The property comprises 117,000 sq. ft. of office accommodation and is fully let to the OPW and occupied by An Garda Síochána at a rent of €4.9m a year on leases which will all have expired by the end of December.  

Since it bought the property, Hibernia has secured planning permission for the redevelopment of the property.  

Kevin Nowlan, chief executive of Hibernia, said the new lease gives both parties certainty on the date of departure and secures near term income for Hibernia. 

"We will now work to optimise our plans for what will be an outstanding future development project," he added.