Hibernia signs up Windmill partner
Property investor Hibernia REIT has unveiled its plans for the iconic Windmill Lane site - once home to a recording studio used by the likes of U2 and New Order.
The company aims to develop over 120,000 sq ft of offices, around 7,000 sq ft of retail, and 15 residential units at the site.
The company has formed a joint venture with an affiliate of American investment firm Starwood Capital to develop the project.
The Windmill Lane studio has now been demolished, but the company has retained a 20-metre stretch of the graffiti wall on the front of the studio and is working with two museums who are interested in using the wall in their displays.
"We are making good progress delivering on our vision to create an exciting new urban quarter that will extend the vibrant hub that is Dublin's South Docks down to the Liffey," a Hibernia spokesman said.
Hibernia bought the site 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 7pc and costs incurred to date by Hibernia.
Under the deal Starwood will pay €4.9m for its share in the partnership, 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 Windmill Lane Partnership, which will own the site..
Hibernia said the transaction will result in a "small increase" to the company's last reported net asset value.
Hibernia REIT chief executive Kevin Nowlan commented: 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."