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Hammerson Sells Three London Office Investments in Pounds 122-M Deal

LONDON-Hammerson has sold three office properties in central London to a subsidiary of private investment group Fordgate, for a total of pounds 122 million ($205 million).

By Graham Parker | Updated on October 20, 2003

LONDON-Hammerson has taken further steps to reduce its exposure to the ailing central London office market with the sale of three buildings to Fordgate for £122 million ($205 million). The three properties were valued at £128 million ($215 million) at 31 December, 2002.

The largest of the three properties is 21 Moorfields in the City of London. The 151,000-sf of office space is let to Lazard Bros under a lease expiring in 2008 at a passing rent of £5.6 million ($9.4 million) per annum although the building is not currently occupied. In 2001, Hammerson obtained outline planning consent to redevelop the site with a new 430 000-sf office building. Under the terms of the sale contract, Hammerson has been retained as development manager and granted an option to participate in any redevelopment of the site.

The other two office buildings were acquired by Hammerson in 1999 as part of its acquisition of the Euston Square Estate, at the entrance to Euston Station in north London. Grant Thornton House provides 69,000 sf of offices and is leased to Grant Thornton while 40 Melton Street provides 116,000 sf of offices and is leased to Network Rail. The two buildings generate an aggregate rent of £5.6 million ($9.4 million) per annum.

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