Hammerson acquires City of London office building for £65m

Hammerson (LON:HMSO) has acquired a long leasehold interest in the Leadenhall Court office building in the City of London  from Alan Bloom and Alan Hudson of Ernst & Young (NYSE:EY) for £65 million.

The 109,000 sq ft (square feet) property is fully let until March 2014 to a subsidiary of FTSE 100 company RSA Insurance Group (LON:RSA). 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%.

Hammerson said there was a “wide range of opportunities” to add value to the property, including the potential for refurbishment or full redevelopment.
“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,” said chief executive of Hammerson David Atkins.