U+I says Dublin housing plans on track amid regroup

U+I, the UK-based property regeneration specialist, has said that it remains committed to the Dublin market and intends to concentrate on projects, like the White Heather Industrial Estate overlooking the Grand Canal in Dublin 8.

The statement comes as it revealed that it had exited its joint venture Spectre platform with Colony Capital which includes four Dublin properties.

These include The Hive, formerly known as Ballymoss House, a 73,000 sq ft office building in Sandyford, south Co Dublin which it redeveloped.

The Spectre platform also included two Ballsbridge office buildings: 23 Shelbourne Road and Carrisbrook House.

It had reached agreement with the Israeli embassy to move it out of Carrisbrook and into 23 Shelbourne Road as U+I planned to redevelop it.

In its statement U+I said: “The market for letting the five buildings in the platform (four in Dublin, one in London) has been severely impacted by the lasting effects of the Covid-19 pandemic and a requirement for significant further investment to cure banking positions.”

On Tuesday the company announced that its chief executive Matthew Weiner had stepped down and that the company was to undertake a restructuring after posting losses for the six months ended 30 September 2020 amounting to £50.2 million before tax, largely resulting from a reduction in investment portfolio valuations and including £25 million of development and trading losses.

The new CEO Richard Upton commenced a 100-day review of the business to cut costs and refocus the company’s activities solely on regeneration projects.

Some weeks ago the Sunday Times reported that Kieran Wallace of KPMG was appointed receiver over certain assets of Development Securities Properties Donnybrook Limited and Spectre (Ballymoss House) Limited. Both companies were jointly owned by U+I and Colony.

Last year Colony had moved to sell off a number of its Irish Interests.

In 2018 U+I paid about €7m for the White Heather industrial estate, which fronts on to the Grand Canal and the South Circular Road.

The 2.84 acre estate was subsequently rezoned for residential use unlocking a potential windfall thanks to its canal side frontage close to the city centre.

The company posted losses of £50.2m to September 2020