Davy Irish Property Fund Secures MetLife Lease Extension at 20 On Hatch
- Lease extension secured for 10 years
- Agreement increases the Fund’s WAULT to 7.3 years, +22% year to date
- Current valuation of the office block represents an increase of 50% over 4 years
Dublin, 15 August 2018 | Davy Irish Property Fund (“DIPF” or the “Fund”), managed by Davy Real Estate, a division of J&E Davy, today announces a 10-year lease extension with MetLife, at 20 On Hatch. The lease renewal of the prime Dublin 2 office block adds to strong leasing activity across the Fund’s office, retail and industrial portfolio, including the recent letting of One Airton Close, in Tallaght. This activity increases the Fund’s weighted average unexpired lease term (WAULT) to 7.3 years.
MetLife, one of the world's leading financial services companies, occupies five floors in 20 On Hatch and has extended the existing lease terms for 10 years, with the agreed rent in excess of €50 per square foot.MetLife is the majority occupier of 20 On Hatch, with Medtronic, the medical technology company, occupying the remaining floor.
The international insurer opened its Dublin office in 2006 and 20 On Hatch is now MetLife’s operational headquarters for Western and Central Europe. MetLife further expanded its presence in Ireland in 2017, with the opening of a Global Technology Campus in Galway.
20 On Hatch was acquired by the Davy Irish Property Fund in 2014 for €27.5 million. With a current valuation in excess of €40 million, this equates to an approximate valuation increase of 50%.
Simon MacKinnon, Investor Relations Davy Real Estate, commented: “We are delighted to retain MetLife, one of the world's leading financial services companies, as a key tenant within our portfolio. We continue to actively engage tenants across our entire office, retail and industrial portfolio, resulting in successfully contracting over 100,000 sq ft of space over the last 6 months. Securing this rental income, ahead of forecasts, significantly strengthens our target 5% income distribution yield for the year.”
Davy Real Estate is a division of J&E Davy. J&E Davy, trading as Davy, is regulated by the Central Bank of Ireland. Davy is a member of Euronext Dublin and the London Stock Exchange. In the UK, Davy is authorised by the Central Bank of Ireland and authorised and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our authorisation and regulation by the Financial Conduct Authority are available from us on request.
Davy Real Estate
Tel: +353 1 672 4225
About Davy Irish Property Fund
Davy Irish Property Fund (“DIPF” or “the Fund”) is an open ended, commercial property fund, focused on delivering consistent returns to investors from a portfolio of premium office, retail and industrial property assets, located predominantly in Dublin. The Fund is a long-term speculative investment.
DIPF is Ireland’s best performing property fund over the last 1 and 3 year periods and has consistently outperformed the majority of Irish property funds over the last 5 years, according to the AON Group Pension Funds Survey in Q1 2018. The survey was based on 9 Irish property funds.
DIPF is authorised as a Qualifying Investor Alternative Investment Fund (“QIAIF”) by the Central Bank of Ireland and is available to Qualifying Investors only, as defined in the Information Memorandum.
Warning: Past performance is not a reliable guide to future performance. The value of investments may go down as well as up. Forecasts are not a reliable indicator of future results.
For further information visit: www.davy.ie./real-estate/dipf
About Davy Real Estate
Established in 1997, Davy Real Estate invests in and manages real estate assets in Ireland on behalf of domestic and international investors. Davy Real Estate is one of the largest real estate investors in Ireland and has acquired over €468m since July 2012. Our asset management team manages in excess of €1.5 billion in real estate assets through regulated and unregulated structures.
For further information visit: www.davy.ie/real-estate