Hammerson, the real estate investment trust (REIT) focusing on the UK and France, has agreed the final payment terms for the acquisition of the long leasehold interest in Bishops Square from the City of London Corporation. Hammerson entered into a joint venture with the Corporation to develop the scheme in 2002, with the final payment to be made following completion of the building and the determination of all costs.
Hammerson, the real estate investment trust (REIT) focusing on the UK and France, has agreed the final payment terms for the acquisition of the long leasehold interest in Bishops Square from the City of London Corporation. Hammerson entered into a joint venture with the Corporation to develop the scheme in 2002, with the final payment to be made following completion of the building and the determination of all costs.
Hammerson said on Friday that it will pay £134 mln (almost EUR 188 mln) by the first half of 2008 for the property. The City retains the freehold interest in the scheme, with Hammerson holding an effective 95% economic interest.
Bishops Square provides 71,900 m2 of office accommodation and 4,700 m2 of retail space divided into 21 units. The retail element of the scheme opened in October 2005 and is fully let. International law firm, Allen & Overy, took occupation of the offices in Autumn 2006. The scheme generates an annual rental income of £34 mln.
'Bishops Square has been a highly profitable development. It has transformed the Spitalfields area adjoining the City, regenerating a key site and acting as a catalyst for further investment in the area', Hammerson's CEO John Richards said.
