REIT Hammerson has purchased an office building that previously formed part of billionaire Syrian Simon Halabi’s White Tower portfolio. The Leadenhall Court building, on the corner of Leadenhall Street and Gracechurch Street, was purchased for £65 million.
The building comprises 109,000 square feet of office space. London Wall’s Alban Gate is the site of the final remaining single property from the portfolio, which has a guide price of £270; the remaining properties are being sold together as the Thames Portfolio.
Hammerson’s initial yield on their new acquisition will be around 11 percent. The building is let until 2014 to a subsidiary of RSA Insurance, for a passing rent of more than £7 million per year.
At the height of the property market, Halabi’s portfolio was worth £1.8 billion. Its value fell by half, leading to a default on a £1.1 billion securitised debt. Halabi was declared bankrupt in April this year.
Image: Flickr (Zyllan)