Property firm Hammerson has sold one of its last central London office properties as it pushes forward with plans to focus solely on retail space.
The deal means the firm has just one office building left in its portfolio.
Hammerson said it had exchanged contracts for the sale of 10 Gresham Street, London EC2, for £200m, representing an initial yield of 5.25%.
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 building was bought in August 2010 for £175m in a 30:70 joint venture with Canada Pension Plan Investment Board.
The deal with Kumpulan Wang Amanah Pencen, the Malaysian state pension fund, means Hammerson's share of the proceeds will be £60m.
Chief Executive David Atkins said the transaction further increased his firm's retail focus and meant the firm had capitalised on investor demand to secure an exit above book value.
The deal comes after the company exchanged contracts on the majority of its office portfolio with Brookfield Office Properties for £518m in June.
Hammerson is now marketing Stockley House, the final office investment in its portfolio.
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
