Hibernia REIT has sold the Chancery office block in Dublin city centre for €23.8m.

The company said this equates to a blended net initial yield of 5.9% and a capital value of €645 per square feet for the office accommodation. 

The property is located on Chancery Lane close to Dublin Castle and comprises 35,000 sq. ft. of offices and four 2-bed apartments.

It is fully let to tenants including the Office of Public Works, Wella and Analytic Partners, and sees rental income of €1.5m a year.

Hibernia purchased the Chancery together with a 0.05 acre site in May 2014 for €16m via a secured loan acquisition. 

Richard Ball, Chief Investment Officer of Hibernia, said that the Chancery was one of the company's early purchases in 2014 via a secured loan acquisition.

"Since then the building has performed strongly due to the attractive purchase price, our leasing activity and the market recovery. This sale allows us to recycle our capital into new projects," Mr Ball added.