Dublin-based investment firm Quinlan Private has formed a joint venture with Morley Fund Management to develop a £275 million (€364 million) office and studio complex at Paddington Central in London's west end. Arthur Beesley,Senior Business Correspondent, reports.

Morley is the asset management unit of Aviva plc, the insurance giant. In its first big deal of the year, Quinlan is taking 50 per cent ownership of the venture. The firm will syndicate investments in the projects to clients.

Quinlan and its partner plan to develop 230,000sq ft net of prime office accommodation and 22,000sq ft net of high-end studio space at Two Kingdom Street.

They have already acquired the site for more than £70 million. The gross development value is estimated at £275 million. Development Securities plc will be the development partner for the project, which will start immediately and is scheduled for completion at the end of 2009.

At a time of some uncertainty in the British economy and in international credit markets, Quinlan Private said its involvement in the deal demonstrated its continued confidence in the long term prospects for the London property market.

"It also reflects a distinct ability to capitalise upon a highly attractive investment opportunity presented by current market conditions," said company partner Thomas Dowd.

Controlled by former tax inspector Derek Quinlan, Quinlan Private has more than €11.5 billion in assets under management in Britain, mainland Europe and the US.

Morley's property team manages in more than £31 billion in British and European property assets.

This company's co-development of an 185,000 square ft office complex at One Kingdom Street is scheduled for completion next month.