Hibernia REIT has completed the sale of One and Two Dockland Central to Commerz Real for its open-ended real estate fund hausInvest for €152.3m.
The property was constructed in 2000 and is situated on Guild Street in Dublin's North Docks.
It consists of 147,500 square feet of office accommodation across two adjoining blocks with parking spaces for 144 cars and 167 bikes.
The offices are fully let to a range of occupiers, including the technology, banking and capital markets and state agency sectors, with contracted rental income of €8m a year.
Hibernia REIT said the price is marginally ahead of the March book value and reflects a net initial yield of about 4.75% and a capital value of €1,032 per square feet for the office accommodation.
Hibernia bought One and Two Dockland Central in 2014 for €90.8m, equating to a net initial yield of 6.6% and a capital value of €629 per square feet for the office space.
Another €21m was invested in refurbishing and expanding the office accommodation and facilities and the property was re-let.
The company said the net sales proceeds are expected to be reinvested in its substantial near term development pipeline.
Edwina Governey, Chief Investment Officer of Hibernia, said the property is a good example of the type of active asset management in which we specialise.
"Having acquired the property in 2014, we negotiated lease surrenders from the main tenants, upgraded and expanded the lettable area before re-letting it to a mix of high-quality occupiers, unlocking significant value for our shareholders," MS Governey said.
"The sale will enable us to recycle capital into the delivery of our Clanwilliam Quarter and Harcourt Square office clusters," she added.