Hammerson secures City lease

11th Jun 2010 07:07

Real estate investment trust Hammerson has bought a long leasehold on a modern building in the heart of the City of London's insurance district.The company has exchanged conditional contracts for the acquisition of a long leasehold interest in Leadenhall Court, a City of London office building, from the joint receivers over the property which is part of the portfolio securing the White Tower 2006-3 plc CMBS issuance. The total consideration is £65m including transaction costs.The building, which was constructed in 1988, provides 10,126 square metres (109,000 square feet) of office space. It is located at the corner of Gracechurch Street and Leadenhall Street, between Bank and Liverpool Street stations.The building is fully let until March 2014 to a subsidiary of RSA Insurance Group. Passing rents are £7.16m per annum after payment of head rent to the City of London Corporation, reflecting an initial yield of 11%. Hammerson said there is a wide range of opportunities to add value to the property, including the potential for refurbishment or full redevelopment of the property.