Hammerson buys Gresham St. building

4th Aug 2010 08:34

Hammerson has set up a joint venture with the Canada Pension Plan Investment Board (CPPIB) to acquire a long leasehold interest in an office building in the heart of London's financial district.The joint venture is acquiring the building at 10 Gresham Street for £183m, including costs of £8m, from Union Investment, a German fund.Hammerson will have a 30% interest in the joint venture and will manage the asset on its behalf. Hammerson's total commitment is £55m.The building comprises 260,000 square feet (24,125 square metres) of high quality offices, retail and ancillary accommodation over eight floors. The principal occupier is Lloyds TSB Bank, with the remainder of the building let to seven other tenants.Total rents passing, net of head rent payable, are £10.7 million a year. Average headline rents are £44 per square foot, and the average unexpired lease term is around 11 years, or nine years factoring in tenant break options.