Hibernia Reit has agreed a new six-year lease with the Office of Public Works for its Harcourt Square property, increasing its rent.
The non-renewable lease will run from January 2017, and will cost the OPW €6 million a year for the offices, car parking and ancillary facilities. The OPW will also pay a one-off arrears payment of €500,000.
The 117,000 sq ft property is currently occupied by An Garda Síochána, fully let to the OPW at an annual rent of €4.9 million.
Hibernia Reit acquired the building in February last year, and has since secured planning permission for its redevelopment.
Hibernia Reit chief executive Kevin Nowlan said the company was pleased to have agreed terms with the OPW. "The new lease gives both parties certainty on the date of departure and secures near-term income for Hibernia," he said. "We will now work to optimise our plans for what will be an outstanding future development project."
