Hammerson in joint venture with GE and Irish bank

Hammerson, the UK-based listed property company, has formed a joint venture with GE Real Estate and the private banking arm of the Bank of Ireland to develop the former London Stock Exchange building. GE Real Estate and the Bank of Ireland will acquire 25% stakes in the partnership for £37.5 mln (EUR 56 mln) each. Hammerson will own the other 50% and will be retained as the development and asset manager for the project. Hammerson plans to use the proceeds of the deal to finance its development programme in the UK.

The former exchange was acquired by Hammerson for about £68 mln (EUR 101 mln) in June 2004. The site now has planning permission for two major office schemes: 125 Old Broad Street and 60 Threadneedle Street. The redevelopment of the 26-storey tower building at 125 Old Broad Street will provide 30,100 m² of top quality office accommodation and 600 m² of retail space. Construction work began in February and is due for completion in December 2007. Hammerson retains ownership of the adjacent site, 60 Threadneedle Street, which has planning consent for a 20,600 m² nine storey office scheme.

Hammerson invests in and develops shopping centres, retail parks and prime offices in the UK, France and Germany. Its portfolio of around 1.2 million m² of retail space and over 260,000 m² of offices is valued at £5.7 billion.