24th Aug 2015 07:46
LONDON (Alliance News) - Hibernia REIT PLC on Monday said it is creating a joint venture with Starwood Capital Group Global LP, with the resulting Windmill Lane Partnership to own and develop the Windmill Lane site in Dublin's South Docks.
Hibernia acquired the Windmill Lane site from Starwood in June 2014 for EUR7.5 million. As part of that deal, Starwood was given an option to buy back in a as a 50:50 joint venture partner. The deal will result in a "small increase" in Hibernia's last reported net asset value.
Starwood is paying EUR4.99 million for the 50% share in the partnership. The Windmill Lane site is a one acre area of land with planning permission for over 120,000 square feet of office, about 7,000 square feet of retail space and 15 residential units.
All future income and expenditure will be shared equally, according to Hibernia's statement. WK Nowlan REIT Management Ltd will act as asset manager and development manager to the partnership.
"The development of the Windmill Lane Site will deliver best in class new office space in central Dublin at a time of significant shortage and we have made good progress since acquiring the site," WK Nowlan REIT Management Chief Executive Kevin Nowlan said in a statement.
The site is one part of the assets Hibernia has assembled in the South Docks.
Hibernia wants to complete development of the site by the end of 2017, and said that demolition works have been completed and piling commenced, with a building contractor expected to be appointed shortly.
Hibernia REIT shares were untraded on Monday morning in London. The stock last traded at EUR1.32.
By Samuel Agini; [email protected]; @samuelagini
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