2nd Nov 2006 09:04
Hammerson PLC02 November 2006 Hammerson Joint Venture, City of London Development Project Hammerson plc has entered into a joint venture with two leading investors tocarry out the development of 125 Old Broad Street, London EC2. GE Real Estate and Bank of Ireland (Private Banking) will each acquire a 25%stake in the 125 OBS Limited Partnership for £37.5 million. Hammerson willcontinue to own 50% of the partnership, and will be retained as the developmentand asset manager of the scheme. Hammerson will use the proceeds to finance itsUK development programme. Hammerson acquired the site of the former London Stock Exchange in June 2004 forapproximately £68 million. The site had planning consent for two major officeschemes, 125 Old Broad Street and 60 Threadneedle Street. The redevelopment of the 26-storey tower building at 125 Old Broad Street willprovide 30,100 m(2) of Grade A office accommodation and 600 m(2) of retailspace. Construction started in February this year with completion scheduled forDecember 2007. At 30 June 2006, Hammerson's 100% interest in 125 Old BroadStreet was valued at £116 million. Hammerson retains ownership of the adjacent site, 60 Threadneedle Street, whichhas planning consent for a 20,600 m(2) nine storey office scheme. John Richards, Chief Executive of Hammerson said: "Hammerson is delighted to be working with GE and Bank of Ireland Private Banking to deliver this landmark scheme. This sale demonstrates the significant value Hammerson has added to the former Stock Exchange site since it was acquired in 2004. We have seen a considerable increase in demand for office space in the City this year and we anticipate that rental values will continue to improve during 2007." Further information: John Richards, Chief Executive Tel: +44 (0) 20 7887 1000Christopher Smith, Director of Corporate Affairs Tel: +44 (0) 20 7887 1019 Email: [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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