FTSE 100 property firm Hammerson has sold the freehold of one of its London properties to St. Martins Property Investments for £176m.
Some £5m of this has been deferred subject to certain conditions which are expected to be satisfied by 2013.
The property, 60 Threadneedle Street, in East London, was completed by Hammerson in January 2009 at a cost of £124m. The 214,200 square foot building is in the centre of the City of London, and forms part of the site previously occupied by the London Stock Exchange.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The last valuation at 30 June 2011 was £165m. Passing rents, post rent-free periods, are £8.8m and the price represents an initial yield to the purchaser of about 4.75%.
David Atkins, Chief Executive of Hammerson, said: "We have a clear strategy for London offices of creating high quality property through asset management and development, then recycling capital to realise value. This disposal will allow Hammerson to crystallise significant development profits and further enhance our financial flexibility for future refurbishment, development and acquisition opportunities.
"Having originally acquired the former Stock Exchange site in 2002, and progressed two separate developments, we generated significant value through the sale of 50% of 125 Old Broad Street in 2006, and have now realised a substantial profit on cost from the sale of 60 Threadneedle Street."
NR
