The price is reported to be $267 million, plus allowance for rent-free periods and costs amounting to $3.4 million. The purchaser is One London Wall Ltd., a company controlled by Hansainvest, a German insurance company.

The 12-story building reportedly generates a net rental income of $15 million per year. Tenants include the London Stock Exchange, Ernst & Young, Goldman Sachs, Lloyds TSB and Nomura International.

In a statement to the London Stock Exchange, Hammerson officials say that "in the City of London office market, the buoyant demand seen for much of 2007 slowed during the last few months of the year. In view of the level of development complications over the next two years and reflecting the reduced levels of activity in the financial services sector, the City occupational market may soften."

One London Wall was designed by Foster & Partners and completed in 2003. The total costs to Hammerson were $98.5 million. Hammerson's $132-million share of the net sale proceeds compares with the book value Dec. 31, 2007, of $136 million, according to a company press release.

In a separate transaction, Hammerson and its JV partners GE Capital and Bank of Ireland have secured the first letting for their major development at 125 Old Broad St. here. French law firm Gide Loyrette Nouel has signed a lease for 33,400 sf of office accommodation on levels 13 to 15 of the building, paying $118 per sf. The lease term is 14 years with no break clause, and a 23-month rent-free period from practical completion, scheduled for April 2008.

Commenting on both the sale and the lease, John Richards, CEO of Hammerson, says in a statement that "these transactions reflect continuing demand from both investors and occupiers for high quality property in the City of London. Our development at 125 Old Broad St. provides attractive accommodation for blue-chip occupiers and, as a building which is designed to be multi-let, is suited to the current market."

Despite turbulence in the capital markets, commercial real estate in London has remained robust. In its January global market report, NAI Global identified office space in London's West End as the most expensive office space in the world. Peak rents in Mayfair can top $225 per sf, the report found.