25th Feb 2008 07:00
Hammerson PLC25 February 2008 London Office Portfolio Hammerson and its joint venture partner Kajima have contracted to sell theirlong leasehold interest in One London Wall, an 18,500 m(2) office scheme in theCity of London, for a consideration of £136 million, before allowance forrent-free periods and costs amounting to £2.0 million. The purchaser is OneLondon Wall Ltd, a company controlled by Hansainvest, a German insurancecompany. The building generates a net rental income of £7.7 million per annum. The development of One London Wall was completed in 2003 by the 50:50 jointventure at a total cost to Hammerson of £50 million. Hammerson's £67 millionshare of the net sale proceeds compares with the book value at 31 December 2007of £69 million. In a separate transaction, Hammerson and its joint venture partners GE Capitaland Bank of Ireland have secured the first letting for their major developmentat 125 Old Broad Street, London EC2. French law firm Gide Loyrette Nouel hassigned a lease for 3,100 m(2) of office accommodation on levels 13-15 of thebuilding, paying £60 per ft(2). The lease term is 14 years with no break clause,and a 23-month rent-free period from practical completion, scheduled for April2008. John Richards, Chief Executive of Hammerson, said: "These transactions reflect continuing demand from both investors and occupiersfor high quality property in the City of London. Our development at 125 OldBroad Street provides attractive accommodation for blue-chip occupiers and, as abuilding which is designed to be multi-let, is suited to the current market." Enquiries:John Richards, Chief Executive Tel: 020 7887 1000Christopher Smith, Director of Corporate Affairs Tel: 020 7887 1019 [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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