Hibernia REIT announces that it has let the remaining 47,500 sq. ft. available in 2WML to Zalando Ireland Limited (“Zalando”), a subsidiary of Zalando SE, a leading European online fashion platform.
Zalando will occupy the remaining floors in 2WML on a 15-year lease, with term certain of seven years. After a six month rent free it will pay initial rent of €2.9m per annum, including contributions to the reception and car parking, which is modestly ahead of the September 2019 estimated rental value (“ERV”) on a net effective basis.
Following this agreement 2WML, which comprises 60,000 sq. ft. of offices and a 12,000 sq. ft. gym, is fully let to Zalando, Udemy and Perpetua (gym), with contracted rent of €3.9m per annum and a weighted average term certain of six years for the office space. The vacancy rate in the in-place office portfolio has now reduced to 7% and discussions remain under way on much of the remaining vacant space.
Justin Dowling, Hibernia’s Director of Property, said:
“We are delighted to welcome Zalando to 2WML and the Windmill Quarter. Following this letting the Quarter’s c.400,000 sq. ft. of office accommodation is fully occupied, marking the completion of a six-year programme to transform the Windmill Lane area in Dublin’s South Docks and the creation of our first cluster of office buildings.”
