Hammerson plc and AXA have signed a lease with Clifford Chance, the leading international law firm, for 13,000 m² (139,900 ft²) of new office accommodation being developed at 9 Place Vendôme. The lease term is nine years, commencing on 1 July 2006, with no break option. The rent for the office space is 698 per m², subject to annual indexation from 1 July 2006.
Clifford Chance will initially take occupancy of 9,700 m² (104,400 ft²) of office accommodation and has committed to take additional office space up to a total of 13,000 m² by December 2012.
Hammerson and AXA will be responsible for sub-letting the space not immediately occupied by Clifford Chance. In addition, Clifford Chance will occupy 1,100 m² of space at the basement level for a cafeteria and use 700 m² for storage from 1 July 2006 at a rent of 349 per m², with a rent free period of 20 months.
The redevelopment of 9 Place Vendôme, which is being carried out in a 50:50 joint venture between Hammerson and AXA, started in January 2004, with completion scheduled for April 2006. The development will create 22,200 m² of office accommodation and 5,500 m² of prime retail behind the world-renowned listed facades on Place Vendôme and on rue Saint-Honoré. Two of the eight retail units, representing 29% of the total projected retail rental income, have been let to Anne Fontaine and Brooks Brothers. Hammerson's estimated total development cost for the scheme is 126 million (£85 million).
John Richards, Chief Executive of Hammerson, commented: "Through this scheme we are creating first class office and retail accommodation in central Paris. I am very pleased that we have signed a lease with Clifford Chance for this prestigious building. 9 Place Vendôme is a very exciting project for Hammerson and will provide one of the most dynamic working environments in Paris."
Pierre Vaquier, Chairman of AXA REIM France, said: "We are delighted to have brought this historical building to the Hammerson and AXA partnership and to welcome Clifford Chance to 9 Place Vendôme, which is one of the most impressive office redevelopments in the centre of Paris."
Hammerson and AXA were advised by CBRE Bourdais and Lefèvre Pelletier & Associés. Clifford Chance was advised by AOS (Amadeus Occupier Solutions).