Hibernia REIT has agreed contacts to sell New Century House to a fund managed by Credit Suisse Asset Management Global Real Estate for €65.3m.  

New Century House was Hibernia's first office acquisition after its initial public offering in late 2013 and it paid €47m for the building.

"Since then the building has increased in value substantially, helped by the strong recovery in the Irish property market and by demand for prime office assets in Dublin’s city centre," commented Richard Ball, Hibernia's chief investment officer.

He said the sale continues Hiberia's recycling of capital into new projects.

The property is situated on Mayor Street in Dublin's IFSC and comprises 80,000 square feet of offices with further basement storage areas and parking.  

It is fully let to Bank of Ireland, producing rental income of €2.9m a year.

Hibernia said the sale price is modestly ahead of the March book value and reflects a net initial yield of 4% and a capital value of €815 per sq ft for the office accommodation.