Ireland's Hibernia REIT has bought US private equity group Starwood Capital out of their 50:50 joint venture to redevelop a site around the former Windmill Lane recording studio in Dublin's South Docks.
Hibernia and Starwood Capital formed the Windmill Lane Partnership in 2015 to develop 11,330 m2 of offices, 650 m2 of retail and 14 residential units on a one-acre site at 1 Windmill Lane. Construction is under way and is scheduled for completion in late 2017.
Hibernia has paid €27.5 mln to a subsidiary of Starwood Capital and has assumed Starwood's 50% share of the €44.2 mln non-recourse debt facility with Deutsche Bank. Almost €9 mln of the facility is currently drawn and will be used to fund the estimated remaining capital expenditure of €28 mln.
Hibernia now has full ownership of five adjacent properties, including SOBO Works, in the SOBO digital and fintech district of Dublin's South Docks, comprising over 34,375 m2 of office space either in-place or under construction.
Opened in the late 1970s, Windmill Lane Studios hosted recording sessions by Irish rock legends U2, Van Morrison, Thin Lizzy and The Boomtown Rats, as well as numerous other Irish and international performers. The studio moved to another location in 1989 and 1 Windmill Lane was largely vacant from 2006 onwards. The outer walls of the derelict building became a canvas for graffiti artists, some of whom honoured the location's musical past.
Hibernia acquired 1 Windmill Lane and an adjoining site in 2014. The premises were demolished in 2015 to make way for the new development.
