Hammerson has exchanged conditional contracts for the sale of Exchange Tower in London's Docklands. The transaction is the fourth deal involving the UK and French REIT this month.
Hammerson has exchanged conditional contracts for the sale of Exchange Tower in London's Docklands. The transaction is the fourth deal involving the UK and French REIT this month.
The purchaser of Exchange Tower is MGPA Europe Fund III. Hammerson will receive proceeds of £134 mln (EUR 160 mln), net of £1 mln disposal costs. Completion is scheduled for September 2010.
The 160-storey office tower at 1&2 Harbour Exchange was originally acquired by Hammerson in 1999 for £77 mln. The building comprises 45,000 m2 of office space let to a range of tenants. At end-December 2009 Harbour Exchange was valued at £131 mln and had passing rents of £10.7 mln.
On Monday, Hammerson announced the acquisition of the remaining 75% it did not already own in Battery Retail Park, Birmingham from its partner TIAA-CREF for EUR 59 mln. Last week, Hammerson sold a 75% stake in its Espace Saint Quentin shopping centre near Paris to Allianz Real Estate for EUR 176 mln.
On 11 June Hammerson said it was acquiring the long leasehold interest in Leadenhall Court, a City of London office building, for about EUR 79 mln. The vendors were 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.
Commenting on the latest transaction, Hammerson CEO David Atkins said: 'Harbour Exchange has been a good investment for the company over the last decade. However, I believe the capital can be better deployed in other opportunities.
'Our recent transactions, including the acquisitions of Leadenhall Court and Battery retail park, and the part-disposal of Espace Saint Quentin, should improve the prospects for future growth from our portfolio whilst overall releasing capital.'
