Property company Hibernia Reit has agreed a new deal that will see 21,000sq ft of office space made available in Dublin.
The firm has signed a five-year contract with Iconic Offices for three floors of space in Clanwilliam Court near Grand Canal Dock. It will provide for the establishment of a serviced office and co-working business.
Under the agreement, Hibernia will provide the property and Iconic will manage the business operations, with the income generated being shared.
Hibernia will fund the majority of the fit-out costs, estimated at €1 million, and will receive the majority of net income from the occupier (after amortisation of the cost of fit-out), up to a level equating to headline rent of about €45 per sq ft.
Iconic will receive the majority of any net income above this level.
The move reduces vacancy across blocks one, two and five at Clanwilliam Court, acquired by Hibernia in June 2016, to below 2 per cent.
Iconic is already a tenant of Hibernia in SOBO Works, an 11,000 sq ft office on Windmill Lane.
Separately, Hibernia Reit said it has pre-let 16,000 sq ft of Two Dockland Central, which was formerly the Guild House, to marketing and sales company HubSpot.
HubSpot, a provider of inbound marketing and sales software, will pay initial rent of €52.50 per sq ft on a 19-year lease with a tenant-only break option in the 11th year. It will receive six months rent-free from the start of the lease.
Hibernia chief operations officer Frank O’Neill said the partnership with Iconic Offices was “an exciting step for us”.
“Co-working and flexible workspace are becoming increasingly significant elements of the office market and we look forward to working with the Iconic team, whom we know well from SOBO Works, to meet this tenant demand,” he said.
“In the medium term, Clanwilliam Court continues to offer significant opportunities for repositioning, whether via refurbishment or redevelopment.”
On HubSpot, he said the space “will be contiguous with HubSpot’s existing accommodation in One Dockland Central, a feature we identified would be attractive to tenants when we underwrote the acquisition of the two buildings”.
“The refurbishment of Two Dockland Central is progressing well and discussions continue with other potential occupiers,” he added.
