21st May 2007 09:00
Hammerson PLC21 May 2007 Hammerson Acquires London Office Building for £71.4 million Hammerson plc has acquired the freehold interest in Stockley House, 130 WiltonRoad, London SW1 for a total cost of £71.4 million from a private client of DTZDebenham Tie Leung. Completed in 1985, Stockley House is a 6,700 m2 (72,500 ft2) eight-storey officebuilding adjacent to Victoria Station. It is fully leased to three occupiers,the Secretary of State for Communities and Local Government, BAA and BalfourBeatty on leases expiring in 2010 and 2011. The current annual net rental incomeis £3.1 million, with an average rental for the office accommodation of £45/ft(2), and provides a net initial yield of 4.3%. The property is adjacent to Victoria Station where the company has existingownerships and is in discussions with Network Rail for the regeneration of thestation to include a major mixed-use development. John Richards, Chief Executive said: "The building has substantial development potential either in isolation or aspart of the company's Victoria Station proposals. Hammerson has an extensivecentral London development programme. I believe this is an attractive additionto our existing development pipeline and that Victoria will show good futureperformance due to the improving quality of office supply and good occupierdemand in this important sub-market of the West End." Hammerson financed the acquisition from its existing committed bank facilities. Hammerson was represented by CB Richard Ellis and the vendor by DTZ Debenham TieLung. Further information: John Richards, Chief Executive Tel: 020 7887 1000 Chris Smith, Director of Corporate Affairs Tel: 020 7887 1019 [email protected] Notes to editors Hammerson plc is a leading European REIT. Established over 50 years ago, thegroup has operations in the UK and France. Its high quality real estateportfolio provides around 1,200,000 m(2) of retail space and 270,000 m(2) ofprime offices and is valued at nearly £7 billion. In recent years the group hascarried out a number of high profile developments in London, most recently the70,000 m(2) Bishops Square scheme in partnership with the City of LondonCorporation. For more information, visit www.hammerson.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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