Property investment company Hibernia REIT has said it is pleased with the progress of its Windmill Lane development, which it now owns fully.

Development work on the project is ahead of schedule and completion is now expected in middle of this year. 

In a trading update from October to today, Hibernia REIT said that both its Two Dockland Central and 1SJRQ projects remain on schedule for their expected delivery dates in late 2017 and mid-2018, respectively.  

However, worse than expected site-specific ground conditions at 1SJRQ along with some design improvements mean total capital expenditure is set to increase by €2.5m to €57.5m.

The company added that this is likely to be partly mitigated by an increase in gross development value, however.In today's trading update, Hibernia REIT also said that planning permission has been received for a new office block at the front of Cumberland House and preliminary planning approval has been granted at Hanover Building to fully refurbish and extend the building by over 30%.

The company said it had net debt of €148m and cash and undrawn facilities of €296m, including 100% of the 1WML debt facility by the end of December. 

"The portfolio has performed well in the period thanks to our asset management activity, with new leases signed at Harcourt Square and Two Dockland Central, the formation of a flexible workspace partnership with Iconic and planning permissions received on two potential developments," commented Hibernia's chief executive Kevin Nowlan.  

"With a strong balance sheet, a talented team and an exciting pipeline of developments, we remain optimistic for the future," he added.