LONDON (ShareCast) - Hibernia Real Estate Investment Trust (REIT) has made a 10m euro acquisition of a Dubin property which it described as having potential for 'significant intensification'.

The REIT has agreed to acquire the Gateway site at Newlands Cross, which will be financed from existing cash resources.

The property comprises 178,000 square foot of warehouse accommodation and occupies a 14-acre site. It is currently 46% occupied and is producing an annual rental income of €517,000. The current gross yield is 5.12%.

Kevin Nowlan, the Chief Executive Officer of the Investment Manager, WK Nowlan REIT Management, said: "We are very pleased to have acquired an income producing asset with enormous development potential in the medium to long term.

"The site occupies a strategic location adjacent to the intersection of Ireland's two busiest roads and Dublin's light rail system. The current upgrade works being undertaken to the Naas Road will considerably enhance the attractiveness of this property."

It is the third acquisition by Hibernia since listing in December 2013 and will bring total funds invested to approximately €128m.

NR

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