INDUSTRY NEWS

Hammerson continues with sales of its London office buildings

Having announced its intention to focus solely on other types of commercial property – namely retail space – British property firm Hammerson has completed the sale of one of its final London office buildings.

It revealed that the contracts for 10 Gresham Street have been exchanged. The building has been sold in a deal worth £200 million to Malaysian state pension fund, Kumpulan Wang Amanah Pencen.

Hammerson originally purchased the property back in August 2010 in 30:70 venture with the Canada Pension Plan Investment Board for £175 million. This means that Hammerson will receive around £60 million from the sale.

Following the sale of 10 Gresham Street, only one office building remains in Hammerson’s office portfolio – Stockley House. It has already begun marketing this particular office building.

Commenting on the sale of 10 Gresham Street, Hammerson chief executive, David Atkins, stated: “This transaction further increases our retail focus and we have capitalised on investor demand to secure an exit above book value. The asset has shown a strong return during our ownership, and we have worked well with CPPIB (Canada Pension Plan Investment Board) where we have an ongoing relationship at Silverburn, Glasgow.

“We are now marketing Stockley House, the final office investment in our portfolio,” Mr Atkins concluded.

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