Hammerson plc has completed the sale of its 50% stake in its last remaining office asset, 10 Grosvenor Street in Mayfair, W1 London, to its joint venture partner Grosvenor Fund Management’s London Office Fund for £54 million (€68 million).
The 5,900 m² office building which is fully let and includes retail at ground floor level was developed in 2003 by Hammerson and Grosvenor. The sale price represents a net initial yield of 3.9% and is slightly above the June 2014 book value.
The building is currently Hammerson’s headquarters and the sale provides flexibility around its forthcoming office relocations over the next 12 months. Hammerson’s lease on the three floors it occupies will expire when it vacates in middle 2015.
In London, Hammerson is taking the sixth floor of Kings Place, King’s Cross, N1 and around 120 staff will move to the new location next summer. Kings Place is part of the area’s vibrant transformation and has excellent transport links, supporting the company’s operational locations and developments in both the UK and France.
Hammerson is also creating an enlarged office in Reading, taking the fourth floor of Aquis House situated in a prominent location opposite the train station. From the end of this year, the new office will accommodate many of the support functions which ensure the smooth running of its £6 billion portfolio of retail property.
The sale of the building completes Hammerson’s disposal of its office portfolio, which has generated £690 million (approx. €870 mln) of funds which have been recycled into its 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.