Hammerson plc has sold its leasehold interest in 83-85 Pall Mall, London SW1, to a UK pension fund client of Orchard Street Investment Management LLP for a net consideration of approximately €50 million (£36.7 million). The sale price reflects a premium to book value of approximately €11,5 million (£8.3 million).
The building, held on a long lease from the Crown Estate, was acquired by Hammerson in 1982 and redeveloped two years later to provide 4,400 m² of high-quality office space, which was refurbished in 1999. The net passing rent on the property is approximately €2 million (£1.4 million).
John Richards, Chief Executive of Hammerson plc, said: "This is in line with Hammerson's policy of recycling capital. The Company plans to reinvest the proceeds in assets offering greater potential for asset management and development."
Chris Bartram, Chairman of Orchard Street Investment Management LLP, said: " We are delighted to have acquired this asset which has significant reversionary income potential and is in a market where we see good growth in the years ahead."