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Hammerson buys former Halabi City office at 11% yield
Hammerson plc announced today that it has exchanged conditional contracts for the acquisition of a long leasehold interest in Leadenhall Court EC3, a City of London office building, from Alan Bloom and Alan Hudson of Ernst & Young LLP, Joint Receivers over the property which is part of Simon Halabi's former Protractor portfolio securing the White Tower 2006-3 plc CMBS issuance. The total consideration is £65 million including transaction costs.
The building, which was constructed in 1988, provides 10,126 m² (109,000 ft²) in a prime City of London location at the corner of Gracechurch Street and Leadenhall Street, between Bank and Liverpool Street stations.
The building is fully let until March 2014 to a subsidiary of FTSE 100 company RSA Insurance Group plc. Passing rents are £7.16 million per annum after payment of head rent to the City of London Corporation, reflecting an initial yield of 11%. There is a wide range of opportunities to add value to the property, including the potential for refurbishment or full redevelopment of the property.
David Atkins, Chief Executive of Hammerson, said:
"This acquisition is in line with our strategy to take advantage of attractive opportunities offered by current market conditions. The building will allow us to use our asset management skills to create value while offering a high initial yield and an immediate positive contribution to earnings."
Hammerson was advised by Strutt & Parker. CB Richard Ellis and Knight Frank acted on behalf of Ernst & Young.
The building, which was constructed in 1988, provides 10,126 m² (109,000 ft²) in a prime City of London location at the corner of Gracechurch Street and Leadenhall Street, between Bank and Liverpool Street stations.
The building is fully let until March 2014 to a subsidiary of FTSE 100 company RSA Insurance Group plc. Passing rents are £7.16 million per annum after payment of head rent to the City of London Corporation, reflecting an initial yield of 11%. There is a wide range of opportunities to add value to the property, including the potential for refurbishment or full redevelopment of the property.
David Atkins, Chief Executive of Hammerson, said:
"This acquisition is in line with our strategy to take advantage of attractive opportunities offered by current market conditions. The building will allow us to use our asset management skills to create value while offering a high initial yield and an immediate positive contribution to earnings."
Hammerson was advised by Strutt & Parker. CB Richard Ellis and Knight Frank acted on behalf of Ernst & Young.
Fri, 11th Jun 2010