UK property company Hammerson and its joint venture partner Pearl Assurance have exchanged contracts with German open-ended fund Deka Immobilien for the sale of the long leasehold interest in Moorhouse, 120 London Wall, in the City of London. Deka agreed to pay 拢230 mln (EUR 289 mln) for the leasehold. The office building was completed in 2004 and provides 30,100 m[sup]2[/sup] of space.
UK property company Hammerson and its joint venture partner Pearl Assurance have exchanged contracts with German open-ended fund Deka Immobilien for the sale of the long leasehold interest in Moorhouse, 120 London Wall, in the City of London. Deka agreed to pay 拢230 mln (EUR 289 mln) for the leasehold. The office building was completed in 2004 and provides 30,100 m2 of space.
The cost of Hammerson's 67% interest in the scheme was 拢142 mln, whilst its share of the net sale proceeds will be 拢152 mln, the company said on Friday. This compares with the book value of the group's interest of 拢169 mln. Hammerson's share of the passing rent is 拢10.5 mln per annum.
'This transaction demonstrates that there is continuing interest from investors for high quality assets in the City of London. It reduces Hammerson's exposure to the City office market and is in line with our policy of recycling capital from mature assets into new opportunities,' said Hammerson's CEO John Richard.
