Hibernia Real Estate Investment Trust (REIT) announced this Monday that it had acquired 98.3ac of farmland in the Newlands Cross area of Dublin 24 for €28.7m, with further conditional payments also agreed for one of the properties.

The main site is a 92.5ac block acquired from the IRFU for an intial consideration of €27m. Hibernia REIT has also bought another 5.8ac from a separate owner for €1.7m. Both transactions come to over €290,000/ac.

The two properties are currently zoned for agricultural use. If the IRFU land is re-zoned in the next 10 years, Hibernia REIT has agreed to make additional payments to the rugby federation bringing the total to at least 44% of its market value at that date.

It is an ideal candidate for mixed-use development

The acquisitions add to Hibernia REIT's existing properties at Newlands Cross: a 14.1ac industrial site acquired in 2014 for €10.1m, and 31.3ac of agricultural land bought last year for €6m (€192,000/ac).

"The land is located within eight kilometres of Dublin's city centre and benefits from excellent transport infrastructure, including the Luas red line and the M50 and N7 motorways. It is an ideal candidate for mixed-use development, including a large element of infill residential," said Richard Ball, chief investment officer of Hibernia.