Dublin firms in London buildings deal

BLACKROCK International Land has agreed to form a joint venture company with Dublin-based Cornerstone to develop a series of office buildings in London’s financial district.

The move could generate up to €145 million in rental income annually.

Dublin-based Blackrock, the property spin-off of fruit distributor Fyffes, is investing €25m for a 37.5% stake in the venture.

The total project expenditure is expected to be around €205m.

The developments, located close to the Bank of England, total just more than 165,000 square feet, and with prime headline rents in the city running at about £60 (€87) per square foot, the companies can expect to generate anything up to €145 million a year in rental income.

Construction on the three grade A office buildings is to commence soon.

Blackrock chairman, Carl McCann, said: “We are pleased to have formed this joint venture with Cornerstone to develop three new first-class office buildings in the City of London which, due to their size and location, will attract strong occupational demand.

“The London office market is very strong at present, with low vacancy levels and rentals showing significant growth.”

The first property will be located at King’s Arms Yard, which is close to St Paul’s Cathedral. This will be a seven-storey, 56,000 square foot office building.

Demolition works have been completed in the area and construction is underway. Completion is expected in autumn 2008.

The second building will be based in King Street and will be a seven-storey, 33,000 square foot office building. The building contract is being finalised and demolition works will commence soon.

Completion is expected in early 2009.

The third development is in Bartholomew Lane and will be a 10-storey, 76,500 square foot office building.

Preparatory works have started and demolition works are to commence soon.

Completion is expected in late 2009.