HAMMERSON PLC
31 August 1999
Hammerson Acquires Central London Office Properties
Hammerson has acquired 18 and 19 Hanover Square, London W1 from Skandia Life
Insurance Company Ltd (PUBL) at a purchase price of £32.9 million.
18 Hanover Square comprises 36,000 sq. ft.(3,340 sq. m.) of office
accommodation held on a long lease (110 years unexpired) at a ground rent of
6% of rents receivable. It is multi-let to six tenants producing £1.22
million per annum on leases predominantly expiring in 2006 and 2008. All
leases contain mutual options to break in June 2003.
19 Hanover Square comprises 26,000 sq. ft.(2,400 sq. m.) of office
accommodation and is freehold. The building is let in its entirety to PIC
Fyfield Ltd until June 2003 at £925,000 per annum with a rent review in June
2000.
There is a resolution to grant planning consent for the redevelopment of the
two buildings to provide 82,000 sq. ft.(7,620 sq. m.) of accommodation,
incorporating a potential Cross Rail station.
Commenting on the acquisition, Ronald Spinney, Hammerson's Chief Executive,
said:
'The two buildings, fronting onto one of the most sought after squares in
London's West End, provide us with reversionary income potential and
interesting asset management opportunities. In the longer term there is
scope for a refurbishment or major redevelopment. Our forecasts indicate
continuing strong demand for prime West End office accommodation.'
Matthew Bolton, Managing Director of Skandia Property Asset Management (UK)
commented:
'These properties have generated very satisfactory returns during the
period of Skandia's ownership and their sale is part of a continuing
process of rationalization within our UK and European portfolios.'
Hammerson was advised by Healey & Baker and Skandia Life was advised by Jones
Lang LaSalle.
For further information:
Ronald Spinney Tel: 0171 887 1000
Chief Executive Fax: 0171 887 1010
Christopher Smith
Director of Corporate Affairs
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