Hammerson buys Leadenhall Court from receiver for EUR 79m

Hammerson is acquiring the long leasehold interest in Leadenhall Court, a City of London office building, for £65 mln (EUR 79 mln). The UK REIT announced on Friday that it had exchanged conditional contracts with Alan Bloom and Alan Hudson of Ernst & Young, joint receivers over the property which is part of the portfolio securing the White Tower 2006-3 CMBS.

The building, which was constructed in 1988, provides 10,126 m² in a prime City of London location at the corner of Gracechurch Street and Leadenhall Street, between Bank and Liverpool Street stations.

Leadenhall Court is fully let until March 2014 to a subsidiary of FTSE-100 company RSA Insurance Group. Passing rents are £7.16 mln 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.

Hammerson was advised by Strutt & Parker. CB Richard Ellis and Knight Frank acted on behalf of Ernst & Young.