UK property group U+I has established a €300million joint venture with US firm Colony NorthStar to buy underperforming office properties in Dublin, Manchester and London.
U+I said it had made an initial capital contribution of €14 million and seeded the venture with two property assets, Donnybrook House in Dublin and The Record Store at The Old Vinyl Factory in London.
The firm recently secured planning for a development of Donnybrook House, a 1970s office building in Dublin 4 that has been vacant for several years.
The potential €45 million redevelopment will include new commercial space, retail and restaurant units.
The Record Store site in London is being repositioned to create 60,000sq ft of creative office space as part of U+I’s wider transformation of the 17-acre site
“The partners will each own 50 per cent of the joint venture, adding value to underperforming office buildings through improved planning, development, refurbishment and asset management,” the firm said in a statement.
Office shortage
U+I chief executive Matthew Weiner said the joint venture would target opportunities to develop high-quality office space where there are limited options for new build.
“ There is currently a shortage of offices across U+I’s core locations which provide the right space or environment to satisfy the needs of today’s modern enterprises,” he said.
“Office refurbishment is one of U+I’s core skills, this platform will allow us to deliver workplaces tailored for the 21st century and create value through our expertise in planning, development, refurbishment and asset management,” he said.
U+I also recently acquired Ballymoss House in Sandyford in Dublin, a 67,000sq ft third-generation office building for €13.5 million.
