18 Jan 2017 07:00
18 January 2017
U+I and Colony NorthStar partner to establish €300 million office repositioning platform
U and I Group PLC ("U+I", LSE: UAI), the mixed-use property regeneration specialist, in partnership with a controlled affiliate of Colony NorthStar Inc. ("Colony NorthStar", NYSE: CLNS), a leading global real estate and investment management firm, are pleased to announce the creation of a specialist, joint venture platform to invest in the London City Region, Manchester and Dublin office markets.
The partners will each own 50% of the joint venture, adding value to underperforming office buildings through improved planning, development, refurbishment and asset management. The partners have both made substantial resource and capital commitments to this new platform, which is expected to deploy approximately €300 million over the next investment period.
U+I has made an initial capital contribution of €14 million and seeded the joint venture with two assets, The Record Store, at The Old Vinyl Factory in London and Donnybrook House in Dublin. The Record Store is being repositioned to create 60,000 sq. ft. of creative office space as part of U+I's wider transformation of the 17-acre site; Donnybrook House is a 72,000 sq. ft. vacant building in a prominent location in central Dublin which U+I will refurbish to meet the demands of creative and tech focussed businesses. Most recently Ballymoss House, a 67,000 sq. ft. third generation office building, has been acquired in Dublin for €13.5 million, the property will be immediately refurbished.
Matthew Weiner, Chief Executive of U+I, said: "We're delighted to be partnering again with Colony NorthStar. The specialist platform will 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. 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."
Stefan Jaeger, Managing Director at Colony NorthStar said: "We are excited to broaden our existing relationship with U+I, who we regard as best-in-class partners, to this strategic specialist platform. With a high-quality portfolio of seed assets and a strong pipeline in markets with attractive fundamentals, we look forward to creating a preeminent portfolio of Grade A office space and leveraging Colony NorthStar's expertise in the creation of scalable platforms."
ENDS
U and I Group plc
Lucy Grimble, Head of Investor Relations
ir@uandiplc.com +44 20 7828 4777