RNS No 7404q
9 August 1999
Hammerson Acquires Central London Development Scheme
Hammerson has exchanged contracts to acquire the long leasehold in 280
Bishopsgate, London EC2 from the Spitalfields Development Group for £27.5
The development site is located on the east side of Bishopsgate, opposite
Broadgate, adjacent to ABN Amro's new UK headquarters at 250 Bishopsgate.
There is planning consent for a 13 storey office tower of 23,200 square metres
(250,000 square feet). It is anticipated that work will start on site
towards the end 1999 with practical completion in 2001 at a total
development cost of approximately £130 million.
The development is situated on the Bishopsgate frontage of the Spitalfields
Market site where there are proposals for major office developments totalling
around 55,800 square metres (600,000 square feet) and the refurbishment of the
existing Horner Market building to provide retail and leisure facilities of
approximately 9,300 square metres (100,000 square feet). A new public space,
Bishops Square, will also be created as part of the master plan.
Commenting on the transaction, Ronald Spinney, Chief Executive of Hammerson,
'We see this as an excellent opportunity to secure a high quality
development scheme with efficient floor plates of 1,900 square metres
(20,000 square feet) in a location offering considerable growth
potential. Our forecasts indicate that there is little new prime office
space coming onto the market over the next few years which, coupled with
continuing occupier demand, should lead to a further increase in rents.
This year Hammerson has already invested £160 million in two major
central London office investment properties, the 44,600 square metres
(480,000 square feet) Exchange Tower in Docklands and the 28,000 square
metres (300,000 square feet) Euston Square Estate in central London.'
Hammerson was advised by Wright Oliphant and DTZ, while Spitalfields
Development Group was advised by CB Hillier Parker.
For further information:
Ronald Spinney Tel: 0171 887 1000
Director of UK Development and Acquisitions
Director of Corporate Affairs