The FTSE-listed property company announced earlier this year that would it was refocusing on retail assets. It has since begun to disposing of its City of London office space as part of the business reorganisation.
Hammerson has accepted a £518m offer from Brookfield Office Properties. The half a billion pound deal will see the New York-based investor to acquire five major City office rentals.
Brookfield has taken on a mix of completed offices for rent in EC2 and a major redevelopment scheme that will provide N1 office space to let in Shoreditch, within Principal Place.
The stated investment rational is that the “Development asset provides Brookfield with the opportunity to cater to tenant space requirements in a market facing limited new supply in a 3-5 year time horizon."
The 857,000 sq ft office and residential scheme is located along Norton Folgate, on the city fringe. A procurement process is under way, with Sir Robert McAlpine and Skanska the leading bidders for the £290m build contract. 99 Bishopsgate is close to the future Principal Place tower and is among the four completed City offices for rent.
Leadenhall Court comprises 109,000 sq ft of EC3 office space to let, all 7 floors of 1 Puddle Dock has been leased, while Brookfield will assume Hammerson’s 50% share in the 328,000 sq ft office tower at 125 Old Broad Street.
Hammerson’s Chief Executive, David Atkins commented: “In our strategic review announced earlier this year we identified the opportunity to enhance returns by focusing our energy and capital on the successful sectors of retail which cater to consumers’ increasing desire for experience, convenience and value."
Confirming the company’s strategic move toward shops and leisure, Mr Atkins added: “I am confident that at this point in the cycle we can reinvest successfully to increase scale in our three chosen areas of prime shopping centres, convenient retail parks and premium designer outlets.”