Property development company Hammerson is set to realise a 74 per cent return on their 1999 purchase of the Exchange Tower near Canary Wharf. Initially bought for about £77 million, the real estate investor has just sold the London office space for £134 million – equivalent to 5.2 per cent per year.
The MGPA Europe III fund have acquired the 16-storey property at a price £3 million over a valuation carried out in December 2009. The sale is proof of the resurgence of interest in office space. This year has seen both capital and rent rises in response to increased demand.
The building includes 45,000 square feet and generated rents of £10.7 million by 2009. The sale has been agreed as part of a Hammerson reshuffle to free up capital for new purchases. Chief Executive David Atkins asserted that ‘the capital can be better deployed in other opportunities.’
Image: Flickr (Mark Hillary)