Hammerson plc and Grosvenor Ltd have exchanged contracts for the sale for £37.4 million of a leasehold interest in Dudley House, 100 Park Lane, to Bristol Isles Ltd, a private investment company controlled by a Middle Eastern investor.
Hammerson has occupied 100 Park Lane under a long leasehold from Grosvenor since 1970. The disposal follows Hammerson's decision to relocate to 10 Grosvenor Street, London W1.
Hammerson, the leaseholder, and Grosvenor, the freeholder, combined their interests in 100 Park Lane in order to facilitate the sale. Under the terms of the transaction, Hammerson will receive approximately £14.9 million, representing 40% of the disposal proceeds. The sale is scheduled to complete before the end of January 2006. Hammerson has the right to remain in occupation until 31 July 2006. However, it is anticipated that the group will relocate to 10 Grosvenor Street during June 2006.
John Richards, Chief Executive of Hammerson plc, said: "This successful transaction unlocks significant value for both Hammerson and Grosvenor. Hammerson now looks forward to the move to 10 Grosvenor Street, which provides modern, efficient office accommodation and the flexibility to further expand the group's business. Our connection with Grosvenor remains as 10 Grosvenor Street was developed by Hammerson in a 50:50 joint venture with Grosvenor."
Hammerson and Grosvenor were advised by Savills.