Hibernia REIT plc today announced the formation of a 50:50 joint venture, the Windmill Lane Partnership (WLP), with an affiliate of Starwood Capital Group Global (Starwood) to own and develop the Windmill Lane site in Dublin’s South Docks.
The Windmill Lane Site is a one acre development site with planning permission for over 120,000 sq. ft. of offices, c. 7,000 sq. ft. of retail and 15 residential units. The site forms one part of the quadrant of adjoining or adjacent assets Hibernia has assembled in the South Docks. Demolition works have been completed, piling has commenced and a building contractor is expected to be appointed shortly. Hibernia is aiming to have the development completed by the end of 2017.
The Site was acquired by Hibernia from Starwood in June 2014 for €7.5m, with Starwood being granted an option to buy back in as a 50:50 joint venture partner at purchase price plus a return of 7%, plus costs incurred to date by Hibernia. Starwood will pay €4.9m for its share in WLP, to which ownership of the site will transfer. All future income and expenditure will be shared equally and WK Nowlan REIT Management Limited will act as asset manager and development manager to WLP.
Kevin Nowlan, chief executive officer, WK Nowlan REIT Management Limited, the Investment Manager, said: “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. We look forward to working with Starwood to complete this exciting project.”