UK REIT Hammerson has completed the sale of its 50% stake in its last remaining office asset in London's Mayfair district to joint venture partner Grosvenor Fund Management for £54 mln (€68 mln).
UK REIT Hammerson has completed the sale of its 50% stake in its last remaining office asset in London's Mayfair district to joint venture partner Grosvenor Fund Management for £54 mln (€68 mln).
The 5,900 m2 office building at 10 Grosvenor Street was developed in 2003 by Hammerson and Grosvenor. It is fully let and includes retail at ground floor level.
The sale price represents a net initial yield of 3.9% and is slightly above the June 2014 book value.
The building currently serves as Hammerson’s headquarters and the sale provides flexibility for its upcoming office relocations over the next 12 months. Hammerson’s lease on the three floors it occupies will expire when it vacates in mid-2015.
In London, Hammerson is taking the sixth floor of Kings Place at King’s Cross and around 120 staff will move to the new location next summer. Hammerson is also creating an enlarged office in Reading, taking the fourth floor of Aquis House.
The sale of the Mayfair building completes Hammerson’s disposal of its office portfolio, which has generated a total of £690 mln of funds. These proceeds have been recycled into the company's retail-focused business including the acquisition of Victoria Quarter in Leeds, the Junction Fund retail parks portfolio, additional investment in Value Retail and a further stake in the Bullring mall in Birmingham.
Hammerson was advised on the sale of 10 Grosvenor Street by DTZ and Herbert Smith Freehills and on its new office locations in London and Reading by Cushman & Wakefield and Herbert Smith Freehills.