Hammerson continues exit from office property

Hammerson has continued its strategy of focusing on retail assets with the sale of the office property in London at 10 Gresham Street, EC2 for a total of £200m to Malaysia’s state pension fund, representing an initial yield of 5.25%.

The building was bought in August 2010 in a joint venture with Canada Pension Plan Investment Board. Hammerson’s share of the proceeds will be £60m. The company said the valuation of the office property at end-June 2012 was £195m and passing rents (Hammerson’s share) at that time were £3m.

The long leasehold office building provides high-quality office space in London, together with retail and ancillary accommodation, totalling 254,000 sq ft. It is fully let and Lloyds TSB Bank is the main tenant.

Hammerson is now marketing Stockley House in Victoria, which is the final office investment in its portfolio.  Hammerson and CPPIB were represented in the sale of 10 Gresham Street by Nabarro. KWAP was represented by CBRE Global Investors, Jones Lang LaSalle and Berwin Leighton Paisner.