U+I and Colony NorthStar have formed a joint venture platform to invest in the City of London, 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.
It is expected to deploy €300m (£259m) over the next investment period. U+I has made an initial capital contribution of €14m and has bought the Record Store at The Old Vinyl Factory in Hayes, Middlesex, and Donnybrook House in Dublin.
The Record Store is being redeveloped to create 60,000 sq ft of creative office space as part of U+I’s wider transformation of the 17-acre site.
Matthew Weiner, chief executive of U+I, said: “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.”
Stefan Jaeger, managing director at Colony NorthStar, said: “With a portfolio of seed assets and a pipeline in markets with attractive fundamentals, we look forward to creating a pre-eminent portfolio of Grade A office space and leveraging Colony NorthStar’s expertise in the creation of scalable platforms.”
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