A prime Dublin city center office building bought in 2017 for €23.8m from Hibernia Reit has had its value reduced to €22.2m by its current owners.

The buyer – a fund controlled by Credit Suisse – has also incurred nearly a million euros in costs for the purchase of the building at 3-10 Chancery Lane in the capital. The acquisition was backed by a €15.4 million loan from AIB.

It includes 35,000 square feet of office space and four two-bedroom apartments.

The purchase in 2017 reflected a blended initial yield of 5.9% and a capital value of €645 per square foot for the office space, according to Hibernia Reit at the time.

Commercial occupants of the building include the Attorney General’s Office, technology firm Analytic Partners and others.

Hibernia acquired the chancery building, along with a 0.05 acre site, in May 2014 for €16 million.

The accounts which have just been published in Luxembourg for the company behind the Credit Suisse fund which bought the building in 2017 show that a valuation of the property was undertaken by CBRE at the end of 2021. It assessed the fair value property at €22.2 million, compared with €23.5 million at the end of 2020.

The accounts note that the fair value is made up of €20.5 million for the office part and €1.7 million for the four apartments.

This compares to €21.9m and just over €1.6m respectively at the end of the previous year.

At the end of 2021, the property was rented at 100pc. The offices generated a total annual income of 1.4 million euros last year, according to the accounts.

The apartments generate rents of just under €72,000 per year, compared to just over €90,000 in 2020.

The €15.4 million loan obtained from AIB to help purchase the Chancery Lane building bears a fixed interest rate of 2.45%. The loan matures in December of this year.

Hibernia Reit, now known as Hibernia Real Estate Group, was acquired this year by Canadian investment giant Brookfield Asset Management in a deal that valued the Irish company at €1.1 billion .

The office vacancy rate in Dublin was 10.2% at the end of the second quarter, according to property group JLL.