Hammerson sells final office asset to JV partner

2nd Sep 2014 10:17

Property group Hammerson has completed the sale of its 50% stake in 10 Grosvenor Street in west London, its last remaining office asset. The site was sold for £54m to its joint venture partner Grosvenor Fund Management's London Office Fund. The sale price represents a net initial yield of 3.9% and was slightly above the June 2014 book value. Hammerson's headquarters are located at the building, where it has leased three floors until mid-2015. The group is planning to relocate over the next 12 months. Chief executive David Atkins said: "The disposal of 10 Grosvenor Street to Grosvenor Fund Management has given us the flexibility to secure leases on two new office premises in locations which we are confident will be popular with both our staff and customers as well as supporting our operational strategy and reducing our cost base."The £690m of funds generated by the office portfolio have been recycled into Hammerson's retail focused business, it added. Shares in the group had dropped 0.24% to 611p by 09:57.NR