Hammerson plc has agreed the final payment terms for the acquisition of the City of London Corporation’s long leasehold interest in Bishops Square, London E1. Hammerson entered into a joint venture agreement with the City to develop the scheme in 2002, with the final payment to be made following completion of the building and the determination of all costs.
Accordingly, a payment of £134 million will be accrued in Hammerson’s 31 December 2007 accounts and paid in the first half of 2008 from the group’s existing financial resources. The City retains the freehold interest in the scheme, with Hammerson holding an effective 95% economic interest.
Bishops Square provides 71,900 m² of office accommodation and 4,700 m² of retail space in 21 shop units. The retail element of the scheme opened in October 2005 and is fully let and international law firm, Allen & Overy, took occupation of the offices in Autumn 2006. The total passing rent from the scheme is £34 million.
John Richards, Chief executive of Hammerson, said:
“Bishops Square has been a highly profitable development. It has transformed the Spitalfields area adjoining the City, regenerating a key site and acting as a catalyst for further investment in the area.”
Michael Snyder, Chairman of the City of London Corporation’s Policy and Resources Committee said:
“This was an extremely successful project, which brought forward the sensitive development of a run-down site, providing modern accommodation for one of the world’s leading law firms. We look forward to working with Hammerson on the future development of Bishops Quarter and elsewhere in the City.”
|John Richards, Chief Executive||Tel: 020 7887 1000|
|Christopher Smith, Director of Corporate Affairs
||Tel: 020 7887 1019