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Published in Commercial Property on 29/03/2018

1WindMill Lane Now Over 96% Let


CNI Editor reports

Hibernia REIT plc has announced the letting of 48,500 sq. ft. in 1 Windmill Lane (“1WML”) to a company in the technology sector. The new tenant will occupy the first and second floors of the building and 13 car parking spaces on two leases with an average unexpired term of 20 years and an average term certain of 11.5 years from lease commencement. 

It will pay initial rent of €2.8m per annum, including contributions to the reception and Townhall areas and car parking, at an average of 4% ahead of September 2017 estimated rental value (“ERV”).  The lease for the second floor will commence in July 2018 and the lease for the first floor will commence in March 2019.

1WML features 124,000 sq. ft. of offices, 8,000 sq. ft. of retail and 14 residential units and is one of the five adjacent properties owned by Hibernia which comprise the Windmill Quarter in the SOBO District of Dublin’s South Docks, and which total c. 400,000 sq. ft. of in-place or under construction office space. 

Hibernia has already let 24,000 sq. ft. of office space in 1WML to Core Media, 36,000 sq. ft. to Informatica and 10,000 sq. ft. to Pinsent Masons.  Today’s announcement means over 96% of the commercial space and 100% of the residential accommodation in 1WML is now let with contracted rent of €7.5m per annum for the property and a weighted average unexpired lease term of 11.5 years for the commercial space.

Separately Depfa Bank (“Depfa”) has served notice of its intention to exercise its options to terminate its leasehold interests in the Forum, in Dublin’s North Docks, in March 2019.  Depfa occupies all 47,000 sq. ft. of office accommodation in the building and 50 parking spaces and is paying rent of €2.0m per annum (an average of €40 per sq. ft. for the office space).  Hibernia is considering options for the building, with the September 2017 ERV of the offices well in excess of the passing rent.

Commenting this morning, Mark Pollard, Hibernia’s Director of Development, said:“We are delighted to welcome another tenant to 1WML.  The building is now over 96% let and the quality of the tenants and rental levels achieved is a testament to the innovative design of 1WML, with its large and flexible communal areas, and to the work we are doing in transforming the Windmill Quarter.”